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Assembly health and social services secretary Jane Hutt gave details of her draft spending proposals to health and ...
Assembly health and social services secretary Jane Hutt gave details of her draft spending proposals to health and social services committee members yesteray for discussion on Wednesday, 24 November.

Jane Hutt said: 'Funding for health and social services will be£2.9bn next year, an increase of£195m or 7.3 per cent. There is more than£30m new money both for the NHS and for social services on top of the£1.03bn over three years announced last year for the NHS and the£26m for social services and social inclusion.

'For the NHS , the total cash increase next year is£181m or 7.0 per cent. This includes£8m new money:£6m from the capital modernisation fund and a£2m special allocation for invest to save projects, which will provide more efficient services, encourage joint working between health and social services and assist financial recovery. In the second year, there is a further£6m for the capital modernisation fund.

'I have already received a number of proposals from the NHS, some in partnership with social services and other local interests. I shall be considering these most carefully and will make detailed announcements in due course.

'We shall also be seeking to add to this funding by accelerating the sale of redundant NHS land and buildings. In addition, there is the

existing£21m under the NHS capital modernisation fund. All together, this means some£54m for new investment in the NHS.

'This will enable us to meet the NHS's most immediate priorities. These have to be essential health and safety issues and schemes delivering revenue savings.

'On the revenue side, I am proposing a£100m, or six per cent, uplift for health authorities' discretionary and protected allocations. With the delivery of efficiency savings, this should enable health authorities to deal with increases in cost and demand. The NHS, within this budgetary envelope, must now redouble its efforts to restore financial balance.

'There is also£1.5m a year reallocated from other health budgets for new central support for cardiac services and£100,000 pump-priming for the new Wales Centre for Health.£8m has been provided this year to fund meningitis vaccine from funding carried forward from previous years.

'The new money for social services reflects the priority attached by the assembly and the health and social services committee to doing more in this area. There is£4.1m new money on central budgets in each year, reallocated from other Assembly budgets, and a further£500,000 a year for voluntary organisations. This includes£3m this year and next to support the implementation of the national strategy for carers in Wales and specifically to allow more respite care to be provided.

The money will be distributed through local authorities and I hope that they will use the voluntary sector wherever possible.

'In addition, central support for local authority children's services is being increased by£500,000 - a 50 per cent increase - to£1.5m a year. Thisis in addition to funding through revenue support grant and will assist authorities in their efforts to improve outcomes significantly for looked after children.

'A further£500,000 is provided recurrently for the introductory costs of the new arrangements for the regulation of social care and the social care workforce in line with commitments made in the social services white paper. This includes both the commission for care standards in Wales and the care council.

'£100,000 over each of the next two years is proposed for the development phases of the proposed children's commissioner. The assembly's health and social services committee is currently considering the role of the commissioner.'


The new money is:


14.0 -NHS : 2000-01 to 2001-02

8.0 -NHS : 1999-00

9.2 -Social services/social inclusion : 2000-01 to 2001-02


Within baseline funding there are the following proposed increases for the NHS next year:

*£1.5m for the development of cardiac services.

*£100,000 pump-priming funding for the introduction of the new Wales Centre for Health.

*£100m cash increase for health authorities' discretionary and protected allocations - a six per cent uplift.

*£3m increase for health authority General Medical Services - 4.4 per cent.

*£30m for health authority drugs prescribing - 9.1 per cent.

*£2m increase in Trusts' discretionary capital allocations - four per cent.

*£6m increase on the training and education of doctors, dentists, nurses and professions allied to medicine - 6.8 per cent.

*£31m increase on the non-discretionary funding for dentists and opticians - 10.7 per cent. This includes the transfer of former reserve funding to this sector; the underlying increase is 5.7 per cent.

*£6m net increase on health improvement to fund the second year costs of meningitis vaccine.

The draft spending proposals will be considered by the Committee and the proposed budget will be considered by the assembly in early December.

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