Monday, December 11, 2006

Don't get ill in February and March 2007

I've just been reading about the new rules regarding overspending Hospital Trusts. Suppose you spent £105m last year and " earned" ( what a joke that is) £100m. So you have a £5m deficit. THIS year, your budget earnings of £100m have to a) pay for everything b) pay back the extra £5m and c) make a profit of £5m ie your actual spend can only be £90m. In effect, and allowing for inflation, that is near enought a 20% cut.
So, finally, Mr. Brown's chickens are coming home to roost. The cumulative deficit will be £1.6b this year.There is no money. The coffers are empty - sorry that's wrong, the coffers have an ADDITIONAL hole of £100b over the last 5 years. And it's growing at £35b or more per year.
And just so we have it clear, this is because of targets and meddling.
I always like the example of feeding London. Nobody plans it. Nobody directs it. Yet Londoners get food and drink and people profit from it. Let Tesco run the NHS.

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