Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Accepted
DHSC attributed unpredictable 2024-25 budget-setting to external shocks and high inflation.
Conclusion
DHSC also noted that 2024–25 had been especially complicated due to ‘external shocks’ and, in particular, very high rates of inflation which made budget-setting very unpredictable.11 It accepted that it was preferable to give longer for local systems to plan their budgets, but said there was a trade-off between how early this took place and the extent to which guidance reflected an up-to-date picture of the wider fiscal and economic environment.12 It felt that to provide budget figures and guidance earlier in the face of significant externalities would do more harm than good because they would be based on unrealistic numbers.13
Government Response Summary
The government will work to enable planning guidance to be published well in advance of the financial year, and NHSE is working with ICBs to have full plans developed before the start of the 2025-26 financial year.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: December 2025 1.2 NHS England publishes planning guidance as soon as funding is finalised and approval is received by Government, in recent years this has been actioned on the same day. NHS England (NHSE) and the Department of Health and Social care (DHSC) continue to work together to enable planning guidance to be published well in advance of the start of the financial year, and ideally before Christmas. 1.3 Having published 2025-26 planning guidance on 30 January 2025, NHSE is working with Integrated Care Boards (ICBs) and providers to have full plans developed before the start of the 2025-26 financial year. 1.4 NHSE and DHSC will continue to work together and with HM Treasury to improve the planning process and ensure timely publication of guidance to the system, and earlier agreement of priorities and financial allocations for future years.