The systems are 98.8% funded from general taxation and National Insurance contributions, plus small amounts from patient charges for some services.
[24] About 10% of GDP is spent on health and most is spent in the public sector.
[25] The money to pay for the NHS comes directly from taxation. The 2008/9 budget roughly equates to a contribution of £1,980 for every man, woman and child in the UK.
[26]
When the NHS was launched in 1948 it had a budget of £437million (roughly £9 billion at today’s prices).
[27] In 2008/9 it received over 10 times that amount (more than £100billion). In 1955/6 health spending was 11.2% of the public services budget. In 2015/6 it was 29.7%.
[28] This equates to an average rise in spending over the full 60-year period of about 4% a year once inflation has been taken into account. Under the Blair government investment levels increased to around 6% a year on average. Since 2010 spending growth has been constrained to just over 1% a year.
[28]
Some 60% of the NHS budget is used to pay staff. A further 20% pays for drugs and other supplies, with the remaining 20% split between buildings, equipment, training costs, medical equipment, catering and cleaning. Nearly 80% of the total budget is distributed by local trusts in line with the particular health priorities in their areas.
[29]
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