If you’re wondering why the NHS continues to struggle with a £7 billion deficit, it’s because of the way it is being run.
We’re told the NHS budget is the most important issue facing the Government, yet it’s been revealed that the Department of Health is spending just £1,000 a day on it.
The Department of Healthcare and Community Wellbeing is one of the biggest employers in the country, with 2.6 million staff, and the NHS spends around £11 billion on salaries, allowances and other benefits each year.
But according to the Office of Budget Responsibility, which compiled its annual report in January, the NHS spent £1.9 billion on the “financial contribution” to the economy in the 12 months to December.
That means, on a monthly basis, the taxpayer’s money is contributing about 0.3 per cent of GDP to the country’s GDP.
And, for the first time in more than 20 years, that figure has fallen below zero.
So how is the NHS spending so much?
And is it possible that it’s just about making ends meet?
“We don’t know what’s going on.
There are many questions that need to be answered,” said Michael Dornan, the chief executive of the Royal College of General Practitioners, a charity which campaigns for the best health care.
“The government is using an annualised rate of return of 4.4 per cent and the OECD says the NHS has a budget of £3.5 trillion and a deficit of £1 trillion.”
Dornan said there were a lot of “unintended consequences” in the health system.
He said: “The NHS is going to spend less money than it brings in.
There’s a lot going on.”
What’s causing the shortfall?
There are many factors at play.
One of the main causes is the ageing of the population, as more and more people get older.
According to the NHS, it is already spending about £300 billion a year on the care of the elderly.
But it is also being hit by a lack of doctors, nurses and other staff.
And the government wants to bring in a new generation of doctors.
But a recent study by the OECD suggests that only 12 per cent will be coming in from outside the EU.
With the current generation of patients coming through the doors, the problem is even more acute.
Another factor is the Government’s plans to expand the NHS into new areas.
Dorset, for example, is in the midst of building a hospital.
But the Department for Health wants to expand it further.
It wants to build on the success of the M40, the £3 billion road network built around the city in the early 1990s.
This road system was designed to provide a faster and more reliable service, but it has not yet become as popular as planned.
Despite the new money, the government is planning to spend £9 billion over the next 10 years on the M20, the motorway project that has been described as a “ghost road”.
The Government says it is making the M80 the “mainstay of its transport strategy”.
But the M8, the M41 and the M44 will all be decommissioned.
There is also a huge shortage of doctors and nurses in the NHS.
Health Minister Chris Grayling recently announced that the number of doctors currently employed in England had reached the lowest level in 60 years.
That is worrying because it means the number will continue to fall, because the NHS needs to recruit more doctors to keep up with the demand.
What can you do to save money?
It is not only the health service which is struggling.
In March, the Government introduced a new “tax avoidance” rule that would see taxpayers paying higher taxes on financial transactions such as savings accounts, car payments and property.
Critics say this will make it harder for people to save for their retirement, and will also be unfair to companies that have to pay income tax on profits.
Labour, meanwhile, wants to scrap the tax system entirely.
However, some economists believe it will reduce the deficit, and reduce the amount of money coming into the NHS by allowing it to raise money from people who otherwise would have stopped donating to the health services.
Is the NHS underfunded?
There are two major problems.
First, the country is not using its vast sums of money efficiently.
Every year, the budget for the NHS exceeds the annual expenditure by £2.5 billion.
Secondly, there are problems with how the system is being managed.
For example, it has been revealed the NHS was “not properly tracking” the amount spent on its staff and consultants, who are vital to the organisation.
Last month, it was revealed the Government was running out of money to run the health insurance scheme for the poor. Now, there