England's health service facing unprecedented challenge, budget watchdog says

LONDON (Reuters) - The National Health Service in England faces an unprecedented challenge from backlogs, workforce issues and rising demand, a budget watchdog said on Tuesday in a report outlining the scale of the challenges facing Britain's new government.

The Labour government, which took office this month, has said the Britain's state-run health system is "broken", and has ordered an independent investigation into the state of the NHS.

"The scale of challenge facing the NHS today and foreseeable in the years ahead is unprecedented," the National Audit Office said in its report.

Prime Minister Keir Starmer and his team have criticised the outgoing Conservative government for the inheritance it left behind, from public finances to migration and prisons.

"Getting the NHS back on its feet is our priority but it will take time," a Department of Health and Social Care spokesperson said.

The previous Conservative government failed to meet a pledge to cut hospital waiting lists. Former Prime Minister Rishi Sunak blamed industrial action in part for derailing his targets, and has defended his record of investing in the health service.

The NAO report said resource expenditure on the NHS grew on average by 3.2% a year in real terms between 2014-15 and 2023-24, below the 3.6% real-terms long-term average growth in healthcare budgets from 1950-51 to 2013-2014, even including a big jump in spending during the COVID pandemic.

It added that regional health provision coordinators "struggle to manage the day-to-day pressures of elective recovery following the pandemic, continual rising demand for NHS services, and significant workforce and productivity issues".

"The NHS's financial position is worsening because of a combination of long-standing and recent issues, including failure to invest in the estate, inflationary pressures, and the cost of post-pandemic recovery," the report said.

Siva Anandaciva, chief analyst at health charity The King's Fund, said deep financial deficits were now common in the NHS and had "a substantial impact on patients", forcing some trusts to reduce staffing or delay transformation plans.

The UK government only controls health policy in England as it is a devolved area in Scotland, Wales and Northern Ireland.

(Reporting by Alistair Smout; Editing by Alison Williams)