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2024 Spring Budget – Highlights for the NHS and healthcare sector

by Berthold Bauer on March 8, 2024

We have summarised areas specific to the NHS and healthcare sector below

Overall Productivity and Funding:

  • Acknowledgment of a 5.9% productivity deficit in public services
  • £3.4 billion additional funding for a comprehensive NHS productivity plan from 2025-26
  • £2.5 billion allocated for day-to-day NHS funding in England (2024-25)

Workforce and Service Enhancement:

  • NHS Long Term Workforce Plan aims to double medical school places
  • Introduction of Pharmacy First aims to direct patients to local pharmacies for some
  • Continued establishment of Community Diagnostic Centres for scanning services
  • The NHS App to be designated as the single front door for patient to access services

Technological Advancements and Data Transformation:

  • £1bn investment into transforming data, by automating admin with AI pilots, introducing digital NHS staff passports and an accelerated Federated Data Platform
  • £2 billion investment to update IT systems and embrace cutting-edge technologies
  • All NHS Trusts to have EPR systems by March 2026, MRI scanners upgraded with AI, and digitising transfers of care

Maternity Safety and Specialised Training:

  • £35 million investment over three years to improve maternity safety..

Investment in Medical Research and Life Sciences:

  • £10.2 million invested in the Cambridge Biomedical Campus
  • £520 million new funding for life sciences manufacturing
  • £45 million of additional funding to the Medical Research Charities Early Career Researchers Support Fund

Agency Staffing and Transparency Measures:

  • Plans to reduce agency staffing costs and “off-framework” agency use from July 2024.

Despite significant funding measures, complex VAT rules sit behind the financial viability of these initiatives. Proactive consideration of VAT implications is therefore crucial early on in the planning stages, and early engagement with Berthold Bauer can ensure VAT compliance and maximised reclaim opportunities.

If you have questions on the above or any other healthcare VAT matters, please reach out to your dedicated Berthold Bauer VAT consultant or email VAT@bbvat.co.uk.

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Berthold Bauer2024 Spring Budget – Highlights for the NHS and healthcare sector

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