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Government announces £15 billion funding for New Hospital Programme

All projects in the New Hospital Programme will be delivered – government confirms; £15B hospital funding
4th January 2023. Luton, Bedfordshire. NHS Emergency Ambulance at Luton and Dunstable NHS Hospital. (gettyimages)

The previous government pledged to build 40 new hospitals by 2030 but 'not a single new hospital was built in the past five years'

The Labour government has confirmed that all projects in the New Hospital Programme will be delivered, backed by a £15 billion investment spread over consecutive five-year waves.

The announcement follows a review of the scheme which found that the previous government’s commitment to build 40 new hospitals by 2030 was “behind schedule, unfunded and therefore undeliverable.”


The Infrastructure Projects Authority (IPA) highlighted these issues in its annual report published last week, rating the previous scheme as 'red'.

Following an independent review by IPA, the New Hospitals Programme's rating was upgraded to 'amber,' reflecting steps taken to improve deliverability.

In May 2023, the former government had claimed the programme was supported by over £20 billion, but this funding was never delivered.

Health secretary Wes Streeting said: “The New Hospital Programme we inherited was unfunded and undeliverable.”

“Not a single new hospital was built in the past five years, and there was no credible funding plan to build forty in the next five years.”

He assured that the current government has set out “an honest, funded, and deliverable” plan to rebuild the NHS.

Morag Stuart, chief programme officer for the New Hospital Programme, emphasised ongoing collaboration with local NHS organisations to enhance hospitals across England.

These include making the best use of new technology, improving layouts and designing future hospitals to meet the needs of patients and staff.

The New Hospital Programme is part of the government’s wider commitment to transform the NHS estate.

Over £1 billion has been allocated to address the backlog of critical maintenance, repairs and upgrades, with an additional £102 million earmarked for upgrading GP surgeries across England.

Building an NHS estate that is fit for the future is key to the government’s Plan for Change, which aims to restore the health service and reduce waiting times.

At the Budget, the Chancellor announced that NHS health capital spending would increase to record levels of £13.6 billion in 2025-26.

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