Health: Government Spending

Debate between Earl Howe and Earl of Onslow

Monday 14th June 2010 Lords Chamber

[Earl Howe]

My Lords, the focus of the exercise that is going on at the moment is, on the one hand, to look at value for money and, on the other, to look at how best we can deliver quality. Therefore, the review will consider which functions should be carried out at a national or arm’s-length level, which could be stopped with no detriment to the delivery of front-line services and which could be undertaken elsewhere in the system or, indeed, left to the market. So there is no target as regards getting rid of a certain number of bodies. The point of view from which we come is that of functions.

[The Earl of Onslow]

My Lords, can my noble friend help me? He implied that savings were to be made, which is excellent. If we are going to make savings in the National Health Service budget, why is the rest of the budget ring-fenced? If you can save £20 here, why not cut the budget by £15 and keep £5 for something else? Why undertake to spend all the savings rather than make them contribute to help after the ghastly state of affairs that was left to the Government?

[Earl Howe]

My Lords, the simple answer is that we have a duty to ensure that every pound that we spend is spent efficiently, wisely and with value for money at the end of it. As my noble friend will know, the cost of healthcare in this country has traditionally risen at a faster rate than inflation, so even if we are advantaged in the sense of being a protected department, we still have to find savings in order to continue to ensure that we can deliver quality care at an acceptable price.