The Chancellor of the Exchequer, Rachel Reeves, delivered the first budget of the new Labour Government to the House of Commons on 30 October 2024.
The Autumn Budget 2024, ‘Fixing the Foundations to Deliver Change’ revealed that the Labour government plans to invest more than £2bn in technology and digital for the NHS to run essential services including £1bn to reduce the backlog of critical NHS maintenance, repairs, and upgrades.
The Chancellor of the Exchequer, Rachel Reeves, delivered the first budget of the new Labour Government to the House of Commons on 30 October 2024
With the cash injection into the NHS the new government also aims to:
- Drive NHS productivity with the following aims:
- Freeing up staff time
- Ensure all Trusts have Electronic Patient Records
- Improve cyber security
- Enhance patient access through the NHS App
Also, according to the Autumn Budget 2024, "In implementing the settlement, DHSC (including the NHS) will deliver 2% productivity next year,” but what do the health tech experts think?
The cash injection into the NHS is welcomed
Jonathan Hinchliffe, Delivery Director of St Vincent’s Consulting, a specialised consultancy focused on digital transformation and operational improvements for healthcare organisations, views the £2bn government’s tech investment as a “positive step in the right direction.”
Hinchliffe said: "Expanding the NHS App, implementing Electronic Patient Records across all trusts, and strengthening cybersecurity aren’t just upgrades—they’re essential for creating a more connected, resilient, and efficient healthcare system.
"The 2% productivity improvement target through digital initiatives is also encouraging. By streamlining admin processes and reducing the pressures on NHS staff, it paves the way for healthcare teams to focus more on what matters most: caring for patients. We’re forward to further details from the secretary of state in the coming weeks!”
We welcome the increased investment for the NHS to help tackle the waiting list backlog and to generate another 40,000 hospital appointments per week
Chris Davies, CEO of ICST, The Institute of Clinical Science and Technology, shared Hinchliffe’s opinion that the cash injection is welcomed and forms a good foundation to provide the best patient care.
Davies said: "We welcome the increased investment for the NHS to help tackle the waiting list backlog and to generate another 40,000 hospital appointments per week. If the government is to lift the NHS out of crisis, we need to ensure every penny goes as far as possible by focusing on value-based healthcare and long-term sustainable solutions."
Criticism of the budget
While the cash injection into the NHS is welcomed, some health tech specialists have highlighted that systematic change is essential for this investment to make an impactful difference.
Dr Rachael Grimaldi, CEO of CardMedic, a healthcare digital communication solutions specialist, also thinks this budget is a positive step, but that is not enough in some regards.
"It falls short of adequately addressing the systemic issues plaguing our healthcare system," Grimaldi said.
The Chancellor stated how the money will help with crumbling estates and new equipment, but did not mention workforce
Grimaldi emphasised areas like healthcare translation and communication that need this focus.
"Freeing up appointments and reducing waiting lists is what we need but the proposed funding alone is unlikely to achieve such ambitious targets without a comprehensive strategy," Grimaldi concluded.
Phil Bottle, Managing Director of SARD, a software company specialising in workforce management and compliance solutions for the healthcare sector, particularly the NHS, agreed with Grimaldi that the infrastructure of the NHS needs to be addressed and highlighted the issue of workforce retention.
Bottle said: "Rachel Reeves’ first budget, which offers the biggest increase in spending outside of covid since 2010, was positioned as a down payment on achieving 2% productivity increases next year. The Chancellor stated how the money will help with crumbling estates and new equipment, but did not mention workforce.
"While replacing ageing buildings and equipment is essential, it is equally critical to invest in detailed workforce data and operational clarity to support a more ethical approach to workforce planning. Too many NHS staff are leaving because they are over-burdened, and overworked. New equipment alone won’t deliver more appointments.
Without accurate, timely visibility of who is working within the NHS and what their specific roles entail, the ability to right-size staffing and align resources ethically with patient demand remains limited
"Without accurate, timely visibility of who is working within the NHS and what their specific roles entail, the ability to right-size staffing and align resources ethically with patient demand remains limited. Improving data quality across clinical, technical, and administrative roles is vital to understanding productivity levels across care pathways, especially in community services where data gaps are widest.
"Only with such insights can NHS trusts optimise resource allocation, ensure patient safety, support workforce wellbeing, and ultimately drive productivity gains that reduce waiting lists and improve patient outcomes."
Conclusion
Overall health tech specialists have welcomed the cash injection into the NHS for the modernisation of NHS services, but some have pointed out that the government needs to provide more detail into how the money is going to be spent and the government needs to look at the infrastructure of the NHS including workforce issues as they systematic infrastructure forms the foundations for the implementation of the digitisation of the NHS.