Source: Department of Health annual report and accounts 2014-15 and Spending Review and Autumn Statement 2015. Real figures are in 2015/16 prices and adjust cash spending for inflation as measured by the GDP deflator.
The budget for the NHS in England for 2015/16 is £116.4 billion.
The increase in spending announced in the 2015 Spending Review will see the NHS budget increase to £133.1 billion by 2020/21. This amounts to a real increase of £4.5 billion. Nearly half this amount is earmarked for 2016/17, leaving the remaining increase spread over the next four years.
This means that between 2009/10 and 2020/21, spending on the NHS in England will rise by nearly £35 billion in cash terms – an increase of 35 per cent. But much of this increase will be swallowed up by rising prices. In fact, around £24 billion will be absorbed by inflation, leaving a real increase of just £11 billion (a 10 per cent rise over eleven years; equivalent to an average annual increase of just 0.9 per cent).