Select committee: Public Accounts Committee

Conclusion 24

5th Report - NHS financial sustainability Published 29 Jan 2025 Addressed to HM Treasury
Conclusion (the committee's words)
Despite carrying out 15% more elective activity than before the pandemic, the NHS is less productive overall once the activities of mental health trusts, community trusts and GPs are considered.42 NHSE told us that, while government has had a long-term aim to shift more care and services into local communities, funding increases for these services had often been slow.43 However, it highlighted how recent capacity investments had been in community services rather than hospitals, for example in 12,500 virtual ward beds in people’s homes, and had focussed on the data and technology needed to support moving more care into the home.44 NHSE acknowledged 38 Q 37 39 C&AG’s Report, paras 4.15 to 4.16 40 C&AG’s Report, para 2.12 41 Q 48 42 Q 12 43 Q 37 44 Q 29 15 that there would have been more investment and progress in enhancing community services in 2023–24 had it not been obliged to redirect funding to prop up the day-to-day spending of local NHS systems.45 NHSE recognised there may be value in considering whether best use is currently being made of the Better Care Fund, intended to support joint working between the NHS and social care, and assessments of continuing healthcare needs outside of hospitals. NHSE said a review of the Better Care Fund might sensibly re-evaluate the structures that currently surround the fund and the content of what its money is being spent on. NHSE reported that it was increasingly seeing improved system working at local level, particularly regarding annual planning processes.46 However, DHSC acknowledged that there were still many problems underlying joint working between health and local authorities, primarily due to having to integrate a service that answers nationally to ministers and a service that answers locally to councillors, with significant variation evident across the country.47 Switching to digital

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