NHS to cut management costs by 850m pounds in four years

Management budgets in the NHS are to be dramatically slashed over the coming four years, the health secretary has announced.

Conservative minister Andrew Lansley confirmed that by 2013-14, management costs are to shrink by 850 million pounds.

The cuts represent a 46 per cent reduction in costs compared to 2009-10.

Mr Lansley explained that the cuts were part of immediate efficiency savings being implemented in the NHS, as well as a reaction to a large-scale increase in management costs in recent years.

According to the health secretary’s figures, management expenditure in primary care trusts and strategic health authorities has risen by more than 1 billion pounds since 2002/03

Mr Lansley said the move was also necessary due to a predicted increase in demand for NHS services in recent years.

He added: “That is why I want to see immediate action this year to reduce management costs, so that the savings made can be reinvested in NHS care for patients.”