Politics
Labour austerity is taking the NHS to the brink admits Streeting
During a speech at the Institute for Government’s annual conference, health secretary Wes Streeting admitted that Labour austerity, branded as ‘efficiency savings’, is having an impact on care:
There are some parts of the service that have oversteered and therefore are underdelivering on elective activity
In context, Streeting means the Labour cuts are going too far. But that’s quite the understatement. Age Concern warned in October 2025 that corridor care had increased by 525-fold since 2015/16. That follows 5,000 nurses coming forward in January 2025 to expose the dire state of the corridor care crises, with testimonies from staff.
Healthcare funding, dramatic cuts continued by Labour
Historically, healthcare funding had increased by 3.6% every year. That’s partly because the population is ageing. But under the Conservatives last government healthcare spending increased at an average of just 1.3% per year. On top of that, the Tories demanded £22 billion in ‘efficiency savings’ from 2010-15.
In fact, according to the British Medical Association (BMA), there has been a real terms cumulative underspend of £425bn in public health spending since 2009/10.
Following that, Labour has pledged a 2.2% increase in health spending until 2028/29. But that’s completely undermined by the governing party mandating 4% ‘efficiency savings’. That’s actually represents a 1.8% cut, putting staff working long hours under increased pressure.
We are way behind many of our counterparts’ healthcare developments, including the number of beds and doctors.
The cuts: in focus
The Lowdown has been investigating how individual NHS trusts are responding to the ‘efficiency saving’ cuts. They note:
In Hampshire, Portsmouth Hospitals University NHS Trust announced the cut of 549 roles as part of a joint plan with the Isle of Wight trust to deliver a 7% workforce reduction and £39m in savings in 2025/26.
A University Hospitals of Leicester NHS Trust Plan reduces roles by 1,611 in 2025/26, and managers opened a process to find voluntary redundancies in July.
Vacancy freezes were introduced at many trusts, including Gateshead Health NHS Foundation Trust (FT), Bradford Teaching Hospitals NHS FT, and University Hospitals Sussex NHS FT.
Many neoliberals view the health service (and the state in general) as a cash cow they can milk through private provision. We need to restore the NHS as a fully public organisation and improve its services rather than head in the wrong direction.
Featured image via the Canary