Health Taxes

Debate between Viscount Younger of Leckie and Baroness Whitaker

Wednesday 12th October 2022 Lords Chamber

[Viscount Younger of Leckie (Con)]

My Lords, I am very aware that the latest estimate of the annual cost to the NHS in the UK of obesity-related ill health is around £6.5 billion—that is the 2021 figure. I add that physical activity and a healthy diet both have important roles to play in supporting people to improve and maintain healthy lifestyles. However, for those who are overweight or obese, eating and drinking less is one of the most important factors.

[Baroness Whitaker (Lab)]

My Lords—

[Baroness Brinton (LD)]

My Lords, I am grateful to the noble Baroness. The Treasury said last week that it will not be changing or reviewing the three-year public spending settlement. However, last Friday, the NHS chief finance officer said that that will result in a further £20 billion of efficiency savings as a result of the increased costs that the NHS is having to pay following inflation, and two-thirds of the new integrated commissioning services started by this Government on 1 July are already in deficit because of inflation. How will the NHS will cope with pressures on top of the existing pressures it has with the backlog of cases?

[Viscount Younger of Leckie (Con)]

The Government are very much aware of the pressures that the NHS is facing. I think we will have to wait until 31 October for the fiscal plan to understand exactly how expenditure will work out in line with the OBR forecast and in line with how we intend to roll out our growth programme. However, I reassure the noble Baroness that the NHS is vital; there are a lot of pressures and issues to tackle.

[Baroness Whitaker (Lab)]

My apologies to the noble Baroness. Following on from her question, is the problem still that the Treasury, when measuring the cost-efficiency of sensible policies such as the tax on sugar, does not offset expenditure in one department against gains made in another—in this case the Department of Health and the NHS? Can the noble Viscount tell the House whether that is still the Treasury’s practice?

[Viscount Younger of Leckie (Con)]

I am unable to confirm that. However, I can confirm—I think this is common knowledge—that a review on efficiency is under way and, as I said to the noble Baroness, Lady Brinton, we will have to wait a couple of weeks or so to see how this will pan out.