NHS faces more cuts to avoid £10bn shortfall, report warns

Exclusive: Leaked Whitehall document says cancer research and social care could be hit

Health secretary Andrew Lansley has come under pressure from David Cameron to prove he can deliver his NHS reforms. Photograph: Lewis Whyld/PA

A "complacent" Department of Health will face an annual £10bn shortfall unless it speeds up efficiency savings across the NHS and considers cuts to social care and cancer research charities, according to a secret Whitehall report leaked to the Guardian.

The damning report warns that ministers will face an "unpalatable trade-off" between longer waiting times or a massive increase in the NHS budget unless dramatic savings are found.

It also warns that the central reform proposed by health secretary Andrew Lansley – to devolve 80% of the NHS budget to GPs – could have "patchy" results.

The findings are outlined in a blunt letter to Danny Alexander, the Treasury chief secretary, from the Independent Challenge Group, which was set up at the time of the budget in June to question Whitehall thinking.

Welfare cuts put added health strain on population

Cutting welfare budgets could cost lives, say researchers.


Analysis of European data showed that a £70 reduction in welfare spending per person is associated with a 2.8% rise in alcohol-related deaths and 1.2% rise in deaths from heart disease.

Writing in the British Medical Journal, the UK research team said ordinary people may be paying the ultimate price for budget cuts.

One expert added that social support was vital for health.

The study comes after the government announced sweeping budget cuts, including reductions in tax credits for families, housing benefit and maternity grants.