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Figures released by the NHS Information Centre show that administration workforces in the NHS grew 8 times faster over the past 6 months than the number of doctors.

Compared with 103722 doctors working in hospitals, there are now over 237000 managers and administrative staff. From October 2009 to April, the total number of bureaucrats rose by 1800, a growth of just less than 1% in the total workforce. During the same period doctor numbers rose by only 100 – a 0.1% increase.

These figures come at a time when there are concerns that the NHS budget is being squeezed by the growing cost of bureaucrats. A case in point is the recent recognition that hospital chief executive pay had increased by 7% over 12 months, more than twice the increases awarded to nurses. Of greater concern is that the NHS Information Centre data also show that doctor numbers have begun to fall.

In April alone, the number of nursing posts fell by 857, whilst the number of doctors decreased by 261 in the same period, with training and junior registrar posts most affected.

Similarly the number of health visitors has fallen, now with just over 10000 employed by the NHS, compared with 45000 managers.

UNISON union officials have expressed great concern that the loss of frontline positions will have a devastating impact upon patient care.

This is the first budget from the coalition Government; George Osborne has issued the toughest budget in a century outlining the Governments plans to balance the books of this country and to get Britain back to work. Here are some of the key points at a glance:

Public Sector Pay

Public sector workers face a two-year pay freeze if they earn above £21,000 per annum. Those earning less will get a flat fixed pay rise worth £250 in both years.

Armed services personnel in Afghanistan will see their operational allowance doubled to £4,800.

State Benefits

Child benefit: Current rates will be frozen for the next three years. Existing benefits: Eldest or only child £20.30 per week any additional children – per child £13.40 per week

Tax credits: Payment rates are reduced for families earning over £40,000pa, next year. However, low income families will get more Child Tax Credit – the amount per child will rise by £150 above the rate of inflation next year.

Housing benefit: Changes to the maximum limits, new limits of £400 a week for properties with more than three bedrooms, £250 a week for a one-bedroom flat, £290 for a two-bedroom property and £340 for a three-bed property.

New changes to housing benefit for unemployed people will see their benefit rates cut by 10%, after 12 months of claiming Jobseekers Allowance from April 2013. Also lone parents will be expected to look for work when their youngest child goes to school. Part of Osborne’s tough love to force Britain back to work.
The government will introduce a medical assessment for Disability Living Allowance (DLA) from 2013 for new and existing claimants.

Taxation

Overall we will all probably pay more tax in one way or another. Taxes are going up, and the chancellor made no excuses about it.

Personal income tax allowance: To be increased by £1,000 in April to £7,475 – worth £170 a year to basic rate taxpayers. It is expected that 880,000 of the lowest-paid will be taken out of income tax altogether.
Council tax could be frozen for one year from April 2011 in England, and extra funds will only be offered to councils which keep their own costs down. Reputedly worth about £35 per household.

VAT: Rate will rise from 17.5% to 20% from January 4, 2011. So if you have any large purchases planned, it would make sense to buy them before January next year.

Capital Gains Tax (CGT): To rise from 18% to 28% from midnight for higher rate taxpayers. The “entrepreneur’s relief” rate of 10% on the first £2m of gains will be extended to the first £5m.

Fuel, Alcohol & Tobacco

No increases this time round. Labour’s plan to increase the duty on cider by 10% above inflation will be scrapped from July.

Business

From April 2011, the threshold at which employers start to pay National Insurance will rise by the rate of inflation plus £21 per week.

People setting up new businesses outside London, the South East and the east of England will be exempt from £5,000 of National Insurance payments for the first 10 workers.

Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, until it reaches 24%.

The small companies’ tax rate will be cut to 20%.

Regions

The upgrade of the Tyne and Wear Metro, extension of the Manchester Metrolink, redevelopment of Birmingham New Street station and improvements to the rail lines to Sheffield and between Liverpool and Leeds will go ahead.

The Budget 2009 proposal to repeal the special tax rules for furnished holiday lettings will not be implemented. Instead, the Government will consult over the summer on an alternative proposal. This will benefit an estimated 4,800 individuals in the North West who receive an income from furnished holiday lettings.

A Regional Growth Fund will be created to help fund regional capital projects over two years.
Pensions

Excluding the state pension and pension credit, from 2011 benefits, tax credits and public service pensions will rise in line with the Consumer Price Index, rather than the, generally higher, Retail Price Index.
The basic state pension will be linked to earnings from April 2011, with the pension guaranteed to rise in line with earnings, prices or 2.5%, whichever is the greater.

The government will also consult on phasing out the default retirement age – to ensure those who want to work past 65 are able to do so.

What does this budget mean to you?

Tell us what it means, how will it affect you? What do you like or dislike? All comments welcome below.