Government outlines NHS reform in Spending Review

The NHS is to cut its capital spending by 17 percent and its administration budget by 33 percent by 2015 as part of the government's Spending Review.

Chancellor George Osborne has outlined new strategies for the health service which will see overall NHS spending increase by 0.4 percent in real terms over the Spending Review period.

Up to two billion pounds of additional investment will be allocated to social care, while a cancer drugs fund worth around 200 million pounds a year will also be set up.

Access to talking therapies will be expanded, while more funding for priority hospital schemes and NHS health research will be provided.

Labour government programmes such as the expansion of free prescription entitlements will be scrapped, while efforts will be made to save money via efficiency improvements.

Health secretary Andrew Lansley said: "The Spending Review reinforces our historic commitment to protect health spending."

Responding to the news, Royal College of Nursing chief executive and general secretary Dr Peter Carter welcomed the real-terms increase in funding, but expressed concern that it may be insufficient "at a time of soaring demand".