Question reference: S6W-26352
- Asked by: Miles Briggs, MSP for Lothian, Scottish Conservative and Unionist Party
- Date lodged: 21 March 2024
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Current status: Answered by Neil Gray on 9 April 2024
Question
To ask the Scottish Government what review it will undertake of the funding formula for health services, in light of the projected population growth in the NHS Lothian area.
Answer
We remain committed to ensuring funding is distributed equitably across the country as set out in the 2021-22 Programme for Government. The existing National Resource Allocation Formula (NRAC) is updated on an ongoing basis for a range of factors including population demographics, relative health needs and remote and rural factors. We will continue to assess the need for a more detailed review of the formula, in line with developments in National Care Service funding and Integration reform.
Public Health Scotland review the calculations each year, which informs the geographical allocation of the NHS budget, ensuring resources are distributed fairly. The Scottish Government is not involved in the calculation of the target values. However, we use the formula to ensure appropriate allocation of resource. In 2024-25, we will provide an additional £31.1 million in parity funding, ensuring that all Boards remain within 0.6% of their target.
Work to determine how the review should be taken forward is underway, with an initial meeting of the Technical Advisory Group on Resource Allocation (TAGRA) having taken place to consider the next steps to determine scope and timing of the review.
Please note that the main driver of the NRAC formula is the population size of each area for the target year and as such each run incorporates the most up-to-date population information available. This includes the latest population estimates (including census data) and sub-national projections published by National Records of Scotland (NRS).