Chancellor Rachel Reeves has put the NHS front and centre as one of her and the nation’s priorities ahead of the Budget later this month.
In a speech to set the scene for the annual fiscal event on 26 November, Reeves also outlined that difficult decisions would have to be made, appearing to leave the door open for tax rises.
She further highlighted the problems of the UK’s productivity problems and the amount of public spending going on interest payments for national debt.
However, Reeves (pictured) emphasised the focus of her approach, including funding for the NHS.
“At the Budget, I will continue to deliver on the priorities of the British people: Cutting NHS waiting lists, cutting the national debt and cutting the cost of living,” she said.
Reeves noted that NHS waiting lists have fallen by more than 200,000 since the election, but after a good start the most recent figures proved stubborn with rises over the summer taking the total back above 7.41 million.
Productivity problem
Addressing productivity, Reeves noted it was already clear the nation’s productivity performance was weaker than previously thought.
“A less productive economy is one that produces less output per hour worked,” she said.
“That has consequences for working people – for their jobs and for their wages, and it has consequences for the public finances too, in lower tax receipts.
“It’s not a question of how hard people work, poor productivity means we are putting in more and getting less out.”
And she added that the nation had already begun to see the results of plans from the last Budget, but that real progress takes time.
Furthermore, noting that one in every £10 of taxpayer’s money is spent on debt interest, she warned the prospect of borrowing more was increasingly unaffordable and would have a growing effect on the economy.
“It is important that everyone – the public and politicians – understands that reality,” she said.
“The less we spend on debt interest, the more we can spend on the priorities of working people, our NHS, our schools, our national security, the public services essential to a decent society and a strong economy.”
