Labour Claims NHS Reform 'Will Cost £3.4bn'

Labour Claims NHS Reform 'Will Cost £3.4bn'
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Coalition reforms of the NHS will cost nearly £3.4 billion, Labour has claimed.

Shadow health secretary Andy Burnham accused the Government of "burying" the true scale of the cost of the reorganisation in papers setting out the technical details of the plans. He claims an order for primary care trusts to hold back 2% of their budgets over two financial years to pay for the overhaul will total £1.69 billion this year and £1.7 billion in 2011/12.

Government estimates put the cost of the shake-up, which includes giving GPs control of health service budgets, at around £1.2-£1.3 billion but academics have predicted the final bill would reach double that.

Mr Burnham said: "This wasteful reorganisation is costing the NHS even more than we first feared. It is scandalous that the Government is spending £3.5 billion on an unnecessary reorganisation when the NHS is facing the biggest financial challenge in its history.

"Before his plans are even through Parliament, the costs of David Cameron's reorganisation are hitting the NHS hard. On his watch patients are waiting longer for treatment and thousands of nursing jobs are being axed.

"These shocking new figures show that the reality is that patient care is being cut in real terms. If ever a reason was needed to stop this reorganisation, then this is surely it.

"Right now, every single penny should be focused on maintaining standards of care. This is a reorganisation that has no democratic mandate and was specifically ruled out by the coalition agreement."

But Government sources accused the shadow health secretary of attacking policies introduced when he was running the NHS. Labour ordered PCTs to hold back 2% of their budgets annually for its Invest to Save scheme, set up to fund a range of projects.

A Department of Health source said: "Yet again Andy Burnham is attacking policies he introduced when he was running the NHS. This is pure opportunism and undermines his credibility hugely.

"In 2009 Burnham was the first to use this approach. However, unlike Labour we will ensure this money gets to the front line. Our plans to reduce the money spent on administration in the NHS by a third will mean that there is an extra 1.5 billion per year to spend on patients."