Finance
Local Financial Context
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NHS Yorkshire and the Humber has successfully delivered its overall financial strategy since its inception in 2006. The financial strategy for 2009/10 and beyond is built on these firm foundations laid in the delivery of a planned surplus and the knowledge that no single PCT expects to overspend its budget. The financial strategy is to invest the current surplus of approximately 3% over the next 2 or 3 years leaving a reasonable level of contingency with which to manage any financial risk. The additional investment made through reducing the surplus, along with growth in annual funding, is expected to deliver significant health benefits for patients across the health economy.
Future Resource Implications
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The DH has given a commitment to the level of funding to be expected over the next 2 years. For NHS Y&H the average growth for the next two years is 5.7% and 5.6% respectively, ranging from a maximum 7.8% to a minimum 5.3% in 2009/10 and 6.9% to 5.2% in 2010/11. This equates to an increase in funds of £441m in 2009/10 and £459m in 2010/11. This represents a significant amount of new money that needs to be spent wisely in a planned way to maximise the benefits for patients.
We are not able to predict what will happen to the financial position of the NHS beyond 2010/11. The wider economic climate is likely to impact on the NHS as it will other public finances. With this in mind it is imperative that the funding available over the next 2 years is used to deliver our strategic priorities set out in this document and improve the health of our local populations.
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