Sugar levy welcome but NHS Providers raises concern over extra pension costs
16 March 2016
- New levy on the soft drinks industry from April 2018
- Most of £520 million raised in the first year of the tax will be used to boost school sports
- Banking fines to Central Manchester University Hospitals NHS Foundation Trust and £700,000 to Sheffield Children’s Hospital Charity
- Announcement on changes to pensions would add substantial costs to NHS providers from 2019/20
Today, Chancellor George Osborne delivers his eighth Budget.
Chris Hopson, chief executive of NHS Providers, said:
Extra pension costs will increase NHS’ liability and, unless additional funding is found, they will represent another squeeze on NHS finances
“Obesity is one of the greatest challenges facing our society – today’s announcement of a sugar levy is one important step in helping to combat the problem. With money for public health no longer protected, it is vital that the government finds other ways of investing in prevention and incentivising the public and industry to change their behaviours.”
NHS Providers also welcomed the announcement of additional funding to four NHS hospitals providing essential services to children in England. Chris Hopson said: “There are many more projects up an down the country requiring investment of this kind, but we are pleased that four hospitals have been recognised in today’s Budget.”
However, NHS Providers expressed concern over changes to pensions, with Chris Hopson saying: “Today’s announcement on changes to pensions would add substantial costs to NHS providers from 2019/20 – this makes an already hugely challenging period for NHS trusts and foundation trusts even tougher.
“While the NHS received a good settlement compared to other parts of the public sector in the Spending Review, it is in the middle of the longest and deepest financial squeeze in its history. These extra pension costs will increase the NHS’ liability and, unless additional funding is found, they will represent another squeeze on NHS finances during the latter years of the parliament. The NHS has been charged with achieving £22 billion in efficiency savings by the end of this parliament but today’s Budget has added to that already ambitious targe