NHS spending 24% higher in real terms than a decade ago, figures show

Spending on the NHS in Scotland has risen by almost a quarter in real terms over the last decade, figures show.

Data from Public Health Scotland shows £17.2 billion was spent on health service operating costs in 2023-24 – up from £16 billion the previous year.

After accounting for inflation, real-terms spending rose by 1.1% over the year – and was 24.6% higher than it was in 2013-14.

However the report also found that with £3.7 billion spent on community health services, real-terms funding for this had decreased by 1.2% in 2023-24 – the second year in a row spending in this area had fallen in real terms.

More than half of NHS spending went on hospital-based services – £9.7 billion which accounted for 56.5% of total spending in 2023-24.

This means spending on hospital services has risen by 11.4% in real terms since 2019-20, Public Health Scotland found.

Spending on family health services – such as running local GP surgeries, dental and ophthalmic services, prescriptions and local pharmacies – has increased by 3.9% in real terms since 2013-14.

Spending in this area amounted to £3.3 billion in 2023-24, with Public Health Scotland saying funding rises for this sector were “considerably less” than for hospital services.

NHS staffing costs in both the hospital and community sectors accounted for £9 billion last year – up by £725 million on the previous year.

Staffing costs made up just over half (52.2%) of total operating costs, with this total having risen even year since 2017-18, when it stood at 47.6%.

Public Health Scotland said: “This is due in part to increasing numbers of staff, and also larger annual pay awards in recent years in response to general inflation.”

Health Secretary Neil Gray said: “More than half of frontline NHS spending (51.5%) in 2023-24 was in community health services, shifting the balance of spending to primary and community care.

“Next year’s Scottish Budget provides funding of £21.7 billion for Health and Social Care – an all-time high – and includes more than £2.2 billion for primary care. GPs and community services will have the resources they need to play a greater role in our health system.

“This will improve preventative care, help develop multidisciplinary teams in general practice, sustain NHS dental care through enhanced fees and continuing free eye examinations.

“Mental health spending has also increased by £179.6 million to £1.486 billion in 2023-24, 9.03% of total net expenditure and an increase from 8.53% in 2022-23.

“Spend on child and adolescent mental health services has increased by nearly £19.4 million to over £134 million which is 0.82% of total spend.”