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NHS spending freeze

Date published: 14/12/2005

Health minister Patricia Hewitt has played down concerns that the NHS would be subject to a spending freeze. Speaking to ITV1's Jonathon Dimbleby, Ms Hewitt said that an investment freeze, pending review, was planned, but this would affect the Department of Health's central budget not front line services.

Her statement came after a leaked memo appeared to show that the department had ordered a cessation of all new investment. The Observer obtained a copy of a memo sent from chief medical officer Sir Liam Donaldson's office.

It ordered an embargo on all new spending commitments and threatened disciplinary action to any staff that ignored the ordered freeze on new investments. It also instructed NHS staff to ignore ministers' promises on future spending.

However, Ms Hewitt argued that the spending freeze related to the Department of Health's central budget, so would only affect public health campaigns and centralised projects. "We are looking at the central department budget simply to make sure that we get every penny of value for the money that is going in," she said.

"Where money's been committed, it will be spent, where there are new proposals coming through, we're looking at them to make sure they give us best value for money." Ms Hewitt denied that the freeze would affect front line services, such as health screening services

The Department of Health recently warned that the NHS could notch up a £620 million deficit for this financial year, prompting Ms Hewitt to reiterate her message of zero tolerance towards over spending trusts.

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