Business group questions NHS spending

The British Chambers of Commerce (BCC) is accusing the government of going on a “spending spree” with money raised from business taxes to fund improvements in the NHS.

Since April 2003, employers have paid an extra one per cent on their national insurance contributions to provide additional resources for the health service, but the BCC claims that the cash has been spent with little thought of delivering value for money.

In a speech at the business group’s annual conference today, BCC director general David Frost will say: “Businesses have paid billions towards increases in funding for the NHS.

“It is increasingly clear that the money has been invested with little thought into delivering real value for money.”

The BCC’s attack comes amid current concern about the way the NHS is funded, with one doctors group warning that Britain’s health service is unsustainable in its current form.

In a letter to the main party leaders yesterday, the Doctors for Reform group warned that a health system funded solely by the taxpayer would fail to meet rising patient expectations and lead to a greater rationing of services and higher financial deficits.

Mr Frost is also expected to question efficiency across the entire public sector, claiming that despite a drop in productivity, wages and pensions in the public sector are outstripping those in the private sector, while businesses are facing increased costs and tougher economic conditions.

The BCC says its research shows that public sector productivity fell by ten per cent between 1997 and 2003, despite a huge growth in jobs and investment.

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