In 2023/24, government spending on healthcare in the UK reached more than £220 billion. This figure has more than doubled in real terms over the last 25 years, and throughout the history of the NHS has consistently outpaced both economy-wide inflation and GDP growth. Spending is therefore not just growing, but taking up an ever-larger share of our national income, rising from 3.6% of GDP in 1949/50 to over 8% today.
This trend is not unique to the UK. In almost every developed country, we see the same pattern – health spending rising both in real terms, and as a share of the country’s national income. These statistics present two puzzles. First, why is spending on healthcare growing so quickly? And, second, can we expect it to continue rising indefinitely?
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe