• Public Accounts Committee releases new report into the financial sustainability of the NHS
• Report calls for “united effort” to tackle challenges and sets out recommendations for government and arms length bodies
• We say report is “a chastening and much-needed reality check” and welcome “PAC’s clear endorsement of the concerns we have raised.”

The Public Accounts Committee has published its report on the Financial sustainability of the NHS this morning.

The report which examines the growing pressure on health finances sets out new and urgent recommendations to government.

It calls for a “united effort” to tackle the huge challenges facing the NHS. The Committee criticises “bickering in public” between key figures responsible for the health service at a time when the financial performance of NHS bodies has worsened considerably.

The report also calls on the government to publish its assessment of whether there is the capacity in NHS bodies “to deliver everything they are expected to within the agreed timeframes”.

Responding to the financial sustainability of the NHS report by the Public Accounts Committee, NHS Providers chief executive, Chris Hopson said:

“This report conveys in stark detail the gravity of the challenges facing the NHS – it’s the latest in a long line of independent reports to conclude the financial situation is unsustainable. It is a chastening and much-needed reality check. We welcome the PAC’s clear endorsement of the concerns we have raised.

“The committee is right to conclude that the financial situation in the NHS is not sustainable. We have argued consistently that there is a growing gap between what the health service is expected to deliver and the money to pay for it. This is making it harder to provide the quality and access to care we all want to see, and that patients deserve.

Trusts know that efficiencies do need to be made and are working hard to do all they can on this front but without additional funding the expectations placed on the service are unrealistic.

“NHS staff are working flat out under enormous pressure. Trusts are treating more patients than ever, and pioneering new ways of working. Trusts know that efficiencies do need to be made and are working hard to do all they can on this front but without additional funding the expectations placed on the service are unrealistic. Our recent survey of finance directors found two thirds of trusts are dependent on one-off savings to improve their financial position. We therefore support the committee’s call for an urgent assessment of what can be delivered.  

“The committee is also right to highlight the damaging impact of taking money out of capital budgets for buildings and new technologies in order to fund day-to-day activities. This will compromise the health service’s ability to adapt to future demands. We share its concerns over progress towards achieving credible STPs that will deliver the desired transformation of services with public support.

“We fully endorse the committee’s concerns over the crisis in social care. This has contributed to the continuing rise in attendances at A & E departments and emergency admissions, and has been a key factor in the sharp increase in delayed discharges for patients who ready to leave hospital.”

NHS Providers contributed to an oral evidence session and that both this and our written evidence are quoted extensively throughout the PAC report.