NHS Lothian loses out on £200 million over decade due to 'unfair' finding formula, claims MSP

‘A £200m shortfall in Scotland’s fastest growing region is completely unsustainable’ - Miles Briggs MSP

NHS Lothian has lost out on more than £200 million from the Scottish Government over the past 10 years because of an unfair funding formula, an MSP has claimed.

Miles Briggs, Conservative MP for Edinburgh and Lothians East, said it was "totally unsustainable" for Scotland's fastest-growing region to endure a continuing shortfall of that scale.

NHS Lothian warned it did not have enough space to carry out all of the patient care neededplaceholder image
NHS Lothian warned it did not have enough space to carry out all of the patient care needed | PA

And he pointed to a warning from NHS Lothian in its annual delivery plan for 2024/25, where it said: "Population growth in the Lothians has now reached a point where the board believes it is unable to fully carry one of its key statutory purposes, specifically regarding the diagnosis and treatment of illness - the organisation simply does not have enough physical capacity – space – to carry out all of the patient care it needs to deliver its statutory responsibilities."

He plans to press for urgent action on the issue when he has a promised meeting with new Health Secretary Angela Constance.

He said: "Lothian has the fastest growing population in Scotland, which currently stands at around 916,000, and will represent 84 per cent of Scotland’s predicted population growth over the period to 2033.

"Yet the health board has consistently received less funding each year than the population growth in Lothian would require, according to the government’s own funding formula.

"The shortfall for 2025/26 is estimated at more than £10m, exacerbating a £200m shortfall over the last ten years."

Funding for health boards is based on the NHS Scotland Resource Allocation Committee (NRAC) formula, which was introduced in 2009/10 and shares out money based on the age and sex distribution of the population in each area, as well as geographic factors and other health indicators. But because of large differences between these amounts and the previous figures boards received the allocations are adjusted each year.

Mr Briggs said over the next 15 years, NHS Lothian required major investment for key upgrades including 33 new or replacement general practices; anew, expanded, Edinburgh Cancer Centre; a National Treatment Centre at St John’s Hospital, Livingston; replacement facilities for people with learning disabilities, and mental illness, at the Royal Edinburgh Hospital; and a replacement for the Princess Alexandra Eye Pavilion.

He said: "The newest funding figures for NHS Lothian are extremely concerning. Lothian has consistently received less funding per head than it requires and the impact on health outcomes is visible to all.

“Waiting lists, discharges, and specialist services are under enormous strain and people are understandably fed up.

“A £200m shortfall in Scotland’s fastest growing region is completely unsustainable. It is high time that the SNP’s NRAC funding formula is overhauled.

“Patients and hardworking healthcare professionals in Lothian deserve better. That is why I will meet with Angela Constance, to make sure ministers do not delay a fair funding package for Lothian any longer.”

When he raised the issue in the Scottish Parliament earlier ths week, Ms Constance said she was aware of the population growth across the Lothians region, not least in her own Almond Valley constituency.

But she said: "Careful consideration must be given to the fact that any changes would not necessarily have the impact that Mr Briggs desires. There is an underlying complexity when it comes to NRAC funding, but I am happy to discuss the matter further with him."

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