Spending up, productivity down in NHS

Productivity in the NHS has fallen since 1997 despite the billions of pounds invested by the Government, it was revealed today.

Research by the Office of National Statistics concludes that productivity fell between 4-8 per cent in the six years to 2003, depending on how the statistic is measured.

The disclosure was described as "damning" by shadow chancellor Oliver Letwin - but statistical experts pointed out that increased spending usually results in poor productivity figures.

John Reid, the Health Secretary, dismissed the figures as absurd.

"The NHS has delivered quality improvements including shorter waiting times, reductions in mortality rates and better-quality consultations," he said.