Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, pursuant to the Answer of 22 November 2016 to Question 52821, what assessment he has made of the reasons for the increase in the number and proportion of NHS trusts in financial deficit over the last five years; and if he will make a statement.

Over the last four years, provider income has grown at approximately 3% on average, whereas expenditure has grown at approximately 4% on average.

These disproportionate spending increases are a direct consequence of increasing demand for health services as a result of the ageing and growing population; new drugs and treatments; and our determination to look after each and every National Health Service patient with the highest standards of safety and care.

The NHS leadership bodies have set out their own plan for delivering financial sustainability for the NHS, in the Five Year Forward View (October 2014) and Strengthening Financial Performance and Accountability document (July 2016). Managing this increase in demand during this period was the key challenge identified in these plans.

This Government is committed to reducing excessive agency spend. Price caps introduced in 2015 saved the NHS over £600 million in the first year of measures. Progress at the mid-year point is encouraging, but there is no room for complacency. That is why the system needs to stick to its strong financial plan, supported by our £10 billion investment and the series of measure set out to help hospitals become more efficient and reduce the use of expensive agency staff.