Wednesday, June 24, 2009

Health care spending (2009)

When the NHS was formed in 1945, the UK was on the verge of bankruptcy. National debt was over 200% of GDP. Yet, the new Labour government went ahead in creating a universal health care which was free at the point of use. In those early days, prescriptions were free and waiting lists low.

In 1945, government spending on health care was £238 million (or £0.238 billion). This was out of a total government spending of £5.9 bn or 3% of total spending. Since 1945, real spending on the NHS has increased much faster than inflation. Health care spending as a % of GDP has also increased.

Updated blog: on UK Health care spending

1 comment:

dickie said...

Comment on Health Care Spending in UK article
Surely one other solution to health care shortages is to reduce government expenditure in other areas i.e. Trident, ID cards etc., which the main political parties seem committed to (‘ring fencing’).