Health: Medicines

House of Lords written question – answered at on 4 June 2007.

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Photo of Lord Naseby Lord Naseby Conservative

asked Her Majesty's Government:

What percentage of total National Health Service expenditure was spent on medicines in the latest year for which data are available; and what was the equivalent percentage 10 years previously.

Photo of Lord Hunt of Kings Heath Lord Hunt of Kings Heath Minister of State, Department of Health, Minister of State (Department of Health) (NHS Reform)

The following table shows total net drugs expenditure and National Health Service revenue expenditure for the years 1995-96 and 2005-06.

Total net drugs expenditure (£ million) Total net NHS revenue expenditure (£ million) Drugs spend as proportion of total NHS revenue expenditure (%)
1995-96 4,379 30,250 14.5
2005-06 9,979 73,677 13.5

National Health Service expenditure is the total NHS net revenue expenditure. NHS expenditure is on a cash basis pre-1999-2000 inclusive, and a resource basis post-1999-2000. Resource budgeting (RB) was introduced in two stages. Phase 1 (2000-01 to 2002-03) included debtors and creditors and phase 2 (2003-04 onwards) applies full RB.

As a result of these accounting differences, the two years are not strictly comparable.

Notes: Figures are net which include Pharmaceutical Price Regulation Scheme receipt savings.

Source: Prescription pricing division of the NHS Business Services Authority, England and department finance division.

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