The Guest Blog: Waiting for Godot
In Samuel Beckett's play Waiting for Godot, the protagonists Didi and Gogo sit by a leafless tree and await the arrival of the much-discussed Godot.
The HealthTech sector has been sitting by a similar leafless tree recently, awaiting the new Government's plan to transform the NHS. The Labour Life Sciences plan (A Prescription for Growth), their Manifesto, the Lord Darzi Review, this week's Budget, and the promise of the 10 Year Health Plan and Industrial Strategy (with the associated Life Sciences Sector Plan) all provide a helpful framework for the end destination, alongside Wes Streeting's three shifts and ambition for the Department of Health and Social Care as a driver of economic growth.
However, I cannot help but feel like we are all still waiting for Godot.
This week's budget will have come as a welcome sign to many within the sector. The Chancellor was quick to point out that the average 4% increase in NHS day-to-day spending (an increase of £21 billion to an overall budget of £192 billion for 2025-26) was the largest increase since 2010 (outside the pandemic).
Rachel Reeves also committed to significant capital expenditure with £10 billion allocated for 2023-24; £11.8 billion for 2024-25 and £13.6 billion for 2025-26. She also committed to one-off spending pots for:
- £1.5 billion for new surgical hubs and diagnostic scanners.
- £1 billion for upgrades and repairs to the NHS estate and buildings.
- £2 billion for NHS technology and digital to ensure that all trusts have Electronic Patient Records, improved cyber security and increasing patient access via the NHS app.
- £460 million on future pandemic preparedness to replenish stocks of PPE and vaccine and medicines stockpiles.
- £26 million to open new mental health crisis centres.
Much of the Government’s capital funding allocation was justified by the state of “capital starvation” identified by Lord Darzi in his Independent Review.
The Chancellor also recommitted to the previous Government’s funding allocation of £520 million for the Life Sciences Innovative Manufacturing Fund over the next five years, with £70 million committed in 2025-26. The Government has also committed to “over £2 billion for R&D funding” resulting in a real terms uplift in the budget of the NIHR, which will support “life sciences innovation and accelerating the delivery of the health and growth missions.” It is unclear from the Budget calculations whether this £2 billion is separate from the capital funding allocated for NHS digital and technology.
As welcome as all of these funding mechanisms are, there are just as many issues impacting the sector negatively. MHRA Statutory Fees increase and wider issues with the regulatory environment; a lack of an adoption framework to support technologies being scaled across the NHS; legacy programmes like the proposed changes to PIX of the Drug Tariff (DHSC) and Late Stage Assessments (NICE) all contribute to the sense within the sector - and certainly across the companies we work with - that the UK is becoming a more difficult place to do business.
However, I know ABHI are continuing to engage with the Government constructively on its 10 Year Health Plan, Industrial Strategy and Life Sciences Sector Plan, as well as on all the issues noted above, to ensure the voice of the HealthTech sector is heard at this critical time.
The rhetoric coming from the Department of Health and Social Care, and the Department of Science, Innovation and Technology is positive. Contributions from each Secretary of State at the Life Sciences Council signalled an awareness of these challenges, and of a commitment to work in partnership with the sector to ensure the barriers to growth are tackled; but this rhetoric will need to turn into action, and fast. The challenges faced by industry are not abstract, and cannot be pushed into the long grass, to be dealt with upon completion of the 10 Year Health Plan.
In Beckett's play, Godot never arrives, and the play closes with Didi and Gogo waiting impatiently, as they have always done. Although I am certain the sector will not be in the same eternal limbo, it is vital that the Government recognises and begins to tackle some of the immediate challenges which can support growth in the economy, support for the NHS and better outcomes for patients.
Roger Greer is Associate Director at PLMR Healthcomms.