Labor MPs are absolutely right to reject Wes Streeting's plan to use private capital to build community health centers (Labor MPs call on Reeves to scrap plans for private funding of NHS buildings, 21 November). Like a family using a payday loan to buy their home, yes, we will end up with a building, but we will have to sacrifice food to keep up with the payments.
Given Rachel Reeves' lack of financial capacity, no one believes that the NHS budget will increase year on year to keep pace with the cumulative financial impact of inflation, the growing healthcare needs of our aging population and possible rising drug prices. So adding a new private funding debt burden to this cocktail will only result in trusts skimping on the one thing they control: patient care.
Research has shown that some trusts pay more in annual debt repayments under private finance initiatives (PFIs) than under private finance initiatives. medicines for patients. new We Own It briefing discusses different private funding models and how each damages the finances of the NHS. The Streeting PFI model will be no different.
Reeves and Streeting have a range of non-private funding options to fund investment in NHS capacity. Reeves has already shown that she can recover wasted public funds with Covid contractsso why not use historical PFI trades?
Secondly, they could introduce a VAT on private healthcare, a policy supported by Neil Kinnock. This will increase about £2 billion.
Street and Reeves' hands are not tied. If they eventually revive private financing in National Health Serviceit will be a political choice.
Johnbosco Nwogbo
Leading member of the “We Own It” campaign
Labor MPs calling on the Chancellor to abandon plans for private funding of the NHS overlook the danger that, under current budget rules, health centers will not be built without private investment. As the State Audit Office established, PFI built projects”on time and within budgetIt was also locked down for years of maintenance, protecting the NHS from chancellors cutting spending.
Ninety hospitals were rebuilt under PFI management in less than ten years, with better value for money. In contrast, non-PFI new hospital construction programAs announced six years ago, most hospitals would not begin construction until 2032.
NHS Lift (Local Improvement Fund) – which gave a share to the public sector – built 350 medical centers in some of the most disadvantaged communities. We cannot allow ideology to force NHS patients to wait in dilapidated and overcrowded buildings.
Lord Hutton
Former Minister of Labor and Chairman of the Public-Private Partnership Infrastructure Investors Association
