NHS - real terms funding cut for PCTs

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Primary care trusts (PCTs) will suffer a real terms funding cut as the government revealed it is not increasing direct spending to match inflation.

Coalition proposals to dramatically shake-up the health service will also go ahead including an addition to allow local councils greater freedom in how NHS funded services are operated. The announcement prompted a furious response from the British Medical Association (BMA) while the NHS Confederation warned about the dangers of the ‘radical and high risk' strategy being pursued by the government. The Department of Health (DoH) announced that an increase of £2.6bn in cash will go direct to PCTs for frontline services in 2011/12, which is equivalent to a 3% increase. However, with in...

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