After the Autumn 2024 budget was announced by Chancellor of the Exchequer Rachel Reeves, MTI reached out to contacts in MedTech for comment on what it would mean for the industry, as well as being inundated with comments from the wider life sciences sector.
Chris Whitehouse, Director of Health and MedTech Policy, Whitehouse Communications
“Bucket-loads more money for the NHS, but conditional on reform and improved productivity – the best way to deliver which will be to make value based procurement a reality. Improving patient outcomes and experience, whilst saving substantial funds for the health and care system. Wes Streeting needs to make it happen across the system.”
Mark Leftwich, Managing Director, Philips UK & Ireland
“The Chancellor’s decision to increase capital investment in technology to deliver more NHS operations, scans and appointments shows early promise. Patients are stuck on waitlists, staff are facing burnout, and three quarters of NHS teams have faced a lack of investment in medical equipment and technological solutions. This funding is a chance to start pulling the NHS back on track.
“State-of-the-art technology is changing the way that care is delivered in pockets, but increased investment in digital and innovation is needed to accelerate this at scale. Primarily, we want to see this increase in capital investment come to life across facilities, infrastructure and innovation. Focus should be on digitising NHS services, bringing the single patient records to life, and shifting care from hospitals to home. We need to be brave in the decisions we make now to transform care through technology and secure a brighter future for our NHS.”
Yogan Patel, Head of MedTech, MHA
“The government has restated the importance of medical technology to the economy and has set out a couple of measures that industry will welcome – specifically £6.1 billion of core research funding for biotech and medical science, and funding for new surgical hubs across the country. Key to the impact of these measures will be the NHS plan due to be unveiled in the coming weeks by the Health and Social Care Secretary.”
Mark Hitchman, Managing Director, Canon Medical Systems UK
“Confirmation in today’s Autumn Budget that £1.5bn will be invested in new beds across our country, along with more capacity for over a million additional diagnostic tests, surgical hubs and diagnostic centres, as part of the Government’s 10-year plan to rebuild the NHS, is very welcome news indeed. However, to achieve an increased scanning capacity, this investment must address the replacement of outdated equipment. And without sufficient staff and space, even doubling the number of scanners will be ineffective.
“The increased funding for Community Diagnostic Centres (CDCs) is fundamental. These centres provide accessible, local care, easing the load on hospitals by offering tests and diagnostics closer to patients. With over 165 CDCs operating in places like shopping centres and sports venues, they have already delivered more than nine million tests – demonstrating their value in reducing hospital pressures and providing timely care.
“The workforce shortage, however, remains a pressing issue and bolstering this must be addressed. Radiography and other diagnostics face limited training opportunities, making roles highly competitive. Investing in advanced, AI-assisted technology can help improve efficiency, but the full benefits will only be realised with a strong, trained workforce.
“This Budget represents a valuable step, but for the NHS to thrive, we need sustained investment in modern equipment, community-based care, and training expansions to meet healthcare demands and deliver better patient outcomes.”
Hannah Davies, Chief Executive of the Northern Health Science Alliance
“We were pleased to see the Chancellor prioritise innovation and funding for the life sciences sector, recognising it as central to the government’s industrial strategy for driving nationwide economic growth. This emphasis on supporting life sciences shows the vital role of the sector in enhancing health outcomes and bolstering the economy.
“The government’s plan for a new multi-year R&D Missions Programme, which will allocate at least £25 million in 2025-26 to tackle targeted challenges, is an exciting initiative. This programme aligns with our ongoing work to build on the excellence of our northern universities and NHS institutions and to foster growth by attracting private and third-sector investment.
“The £70 million commitment for the new Life Sciences Innovative Manufacturing Fund in 2025-2026 is a positive step, along with the promise of long-term investment of up to £520 million to strengthen resilience against health emergencies and leverage the UK’s R&D strengths. While this commitment is encouraging, and we look forward to further details, we had hoped to see more place-based funding to address decades of underinvestment in the North and mitigate policies that have limited growth in the region.
“Our research highlights a significant shortfall in R&D funding in the North of England, where investment remains disproportionately low. Any further cuts to health research funding would severely impact productivity and economic growth across the region. Investing in health research and development is crucial for fostering sustainable growth in the North of England, as it stimulates economic development both regionally and nationally while playing a vital role in improving local health outcomes.
“Investment in northern life sciences could generate 50,000 jobs and add more than £10bn to the economy by 2040, and this budget could have been an opportunity to begin investing for that future. With balancing investment across the UK a key part of UKRI strategy, we hope to see future commitments to investment in the North’s health sciences made by the government and this imbalance addressed so we can build on one of the nation’s most valuable R&D assets.”
Siva Anandaciva, Chief Analyst at The King’s Fund
“This Budget has been delivered among a backdrop of dire NHS performance and extremely tight public finances.
“The Chancellor has said that ‘change must be felt’, but the health spending announced today is unlikely to be enough for patients to see a real improvement in the care they receive. The 3.8% real-terms uplift over two years to the Department of Health and Social Care budget will help sustain services but is unlikely to drastically improve care over the rest of this year, and certainly not overnight. That’s because the £22bn for two years allocated for day-to-day spending will also need to cover existing commitments for new staff pay deals and rising costs of delivering care.
‘The increases to capital investment in NHS buildings and equipment announced today will go some way towards reducing the waiting list in coming years, by increasing the number of hospital beds and surgical hubs in the NHS. However, the existing backlog of NHS maintenance issues with buildings and equipment is a staggering £13.8 billion and the extra funding announced today will only be a modest downpayment on what is needed to tackle unsafe and outdated NHS facilities.
“The additional £600m announced for social care will be welcomed by the sector but is substantially less than what has been allocated to the NHS – many social care leaders will look on with envy at the funding their health service colleagues have received. Care providers will also have to shoulder extra employer costs from national insurance changes and minimum wage increases, exacerbating the difficult financial position they are in.
“It is positive to see the government using its fiscal and regulatory tools to help improve the nation’s health, including increases to tobacco duties and the soft drinks levy. But the government has chosen to provide little clarity on overall budgets to support public health services.
“On the whole, this budget has been a starting point for the investment and reform that is needed to begin to stabilise the trajectory of NHS performance, but it is not enough for the system to deliver the wholesale shift needed for a health and care system fit for the future. To achieve that, more funding will be needed in next year’s comprehensive spending review.”
Dr Anas Nader, CEO and Co-Founder, Patchwork Health
“We can’t get the NHS onto a sustainable footing without technology, but widespread ‘tech fatigue’ across the health service will be a stumbling block. Staff are sick of new systems being introduced that either don’t work or aren’t interoperable – they create more problems than they solve. Today’s investment is an opportunity to reset. This new capital must be invested in digital solutions which are fit-for-purpose and integrate with the wider realities of NHS work.”
Nick Lansman, CEO and Founder, Health Tech Alliance
“The Health Tech Alliance welcomes today’s Budget announcement of increased spending in health services, including an additional £22.6 billion for the Department of Health and a £3.1 billion increase in capital investment. The new 2% productivity growth target for the NHS will be supported by critical funding for surgical hubs and diagnostics, which will be key for Labour’s plans to deliver 40,000 appointments per week.
“We also welcome the increased focus on using technology to improve public services and investment in research and development, including the Life Sciences Innovation Manufacturing Fund which will help to address the uptake of innovation in the NHS.
“With hospital backlogs at nearly 8 million and the 10 year plan for the NHS early in development, this funding is certainly a step in the right direction for improving patient outcomes and getting the NHS back on its feet. Whilst there is a long journey ahead to get the NHS fit again, today’s announcements are the shot in the arm that the service needs.
“We are looking forward to working collaboratively with DHSC, NHSE and industry to drive forward the role that health technologies play in ensuring quality patient care within the NHS.”
David Stockdale, CEO, British Healthcare Trades Association (BHTA)
“While we fully welcome additional funding for the NHS, we are deeply concerned about the impact of rising costs on the private sector. Many of our members are small and medium enterprises, tied to fixed-price contracts with NHS suppliers, and rising business costs could make them completely unsustainable. Taking on increased National Insurance and the Minimum Wage will be particularly costly without support. In fact, we are already hearing that without support this could ‘decimate’ vital sectors like community equipment.
Tax increases and other escalating business expenses threaten to offset any additional investment being made by the Government. The hundreds of SME’s that we represent will bear the brunt if this budget despite the fact that we supply the NHS and local authorities with the essential tech and products necessary to deliver timely, effective care. We stand ready and willing to work with the Government to ensure that this investment is not eroded by increased tax burdens on businesses.”
Commenting on behalf of the Stop the Heart Restart Campaign, Stockdale added:
“It’s deeply disappointing that the Chancellor has chosen not to remove VAT on all defibrillator purchases. Today’s budget includes tens of billions in tax increases and spending commitments, yet cutting VAT on defibrillators would have been a minimal cost for the Treasury. Just last week, our campaign’s Ambassador, Jack Hurley, along with a range of supporters, took our concerns to Parliament and No. 10. Over 65 MPs—nearly 10% of Parliament—backed our call to remove VAT from all defibrillator purchases.
While today’s outcome is disappointing, we will continue pushing for this vital, life-saving change. A small adjustment in VAT policy could mean having 6 defibrillators in the community for every 5 currently available. Removing VAT on these devices is the right thing to do, and we’re committed to advocating for this change until it’s achieved.”