Select committee: Public Accounts Committee

Recommendation 5

5th Report - NHS financial sustainability Published 29 Jan 2025 Addressed to HM Treasury
Recommendation (the committee's words)
Given the constraints on public spending, it is highly likely that re- focusing attention from sickness to prevention cannot be achieved without re-allocating existing NHS funds in the same direction. Senior ICB leaders report a continued lack of progress with the government’s long-standing aim to move towards preventing ill health rather than 5 treating it. Furthermore, the public health grant used by local authorities to commission preventative measures such as health-visiting and drug and alcohol services is expected to fall in value by £193 million (5%) over the period 2022–23 to 2024–25 (at 2022–23 prices), despite government’s commitment in 2021 to maintain it in real terms. However, DHSC does not view providing more resources for prevention as a substantive part of the solution. Instead, it considers that a shift towards prevention might be achieved through longer-term legislative and culture change to tackle issues such as obesity, physical activity and poor air quality alongside a shift in the way GPs advise patients. Both DHSC and NHSE see the 10-year health plan as an opportunity to crystallise their prevention ambitions, but the lack of a precise definition of what even counts as prevention spending will make assessing progress against this vital policy aim impossible. Local areas would value more flexibility about where they can direct their resources to achieve greatest impact, including how they fund measures to prevent ill health. recommendation a. DHSC, NHSE and HMT should define what counts as health prevention spending for the whole of government within the next six months, and track that spending annually, using 2024–25 as a baseline year. b. DHSC and NHSE should set out the funding increases required for prevention and give local systems the flexibility and autonomy they need to direct this funding where it can have the greatest impact.

From: Public Accounts Committee, 5th Report - NHS financial sustainability (HC 350), 29 January 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Fifth Report of Session 2024-26

The government responded to the whole report on 4 June 2026.

Read the government's response ↗ Report an error

Treasury minutes: Government response to the Committee of Public Accounts on the Fifth report from Session 2024-25

Published 16 May 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government agrees with several of the Committee's recommendations, including on earlier planning guidance, productivity and capital-to-revenue switches, is still considering others, and disagrees with the recommendation on paperless providers.

  • On planning, the government agrees that guidance should be issued earlier, with a target implementation date of December 2025. NHSE and DHSC are working so guidance is published "ideally before Christmas".
  • On the ten-year plan, prevention spending definitions and community funding, the government "is considering" the recommendations and says it will notify the Committee of its response "when it is confirmed".
  • The government agrees that NHSE should set out its productivity actions (target: Autumn 2025). It says the plan for productivity improvements from 2026-27 "will be set out following Phase 2 of the Spending Review".
  • The government disagrees with the recommendation on paper reduction, saying it "does not agree that providers should be fully paperless" as some patient communications must be sent by letter. It expects trusts and ICBs "to restrict fax machine use".

Read the government's response ↗ Report an error