Budget 2024 ILC’s response: NI cut could be better spent on longer, healthier lives

Investing £10bn in preventing ill health would keep people in work for longer and reduce the burden on the NHS

Responding to today’s Budget, David Sinclair, Chief Executive at the International Longevity Centre UK (ILC) the UK’s leading authority on demographic change, commented:

“Tax cuts are incompatible with maintaining public services and the investment we desperately need as our population is ageing.

“Our economy needs all of us to be healthy. We’ve long called for at least 6% of the health budget to be spent on prevention – around £10.9 billion – a sum that equates to the cost of the National Insurance cut proposed today. This would keep more people working and reduce the burden on the NHS.

“Without a bold plan for adapting to demographic change, our long lives will be a drag on economic growth rather than the economic opportunity they should be.

“Life expectancy is falling, and every year of lost life expectancy means 2.6 years less spent in good health.

“Inequalities are growing – in the last decade, average healthy life expectancy from birth has fallen across half of the UK’s local authorities while the other half of the country has enjoyed increased wealth and health.

“Raising duty on tobacco and vapes is welcome but the Government should do more; making better and targeted use of tax and regulation to encourage healthy behaviours – and properly invest in preventing ill health. The business case for the nanny state is compelling and cuts to public services take a long time to heal.

“Five-year election cycles might well make long-term planning trickier, but we’re running out of time for such excuses. If we are to reap the benefits of our longer lifetimes, then Budgets must look beyond the next ballot box.”

Ends

Contact: For press queries, please contact press@ilcuk.org.uk. Spokespeople are available for interview.

Notes

DHSC spending in 2022/23 was £181.7 billion – 6% is £10.9 billion.

The ILC’s report One hundred not out: A route map for long lives, published in December 2023, highlights how society and Government need to rethink and invest more in public policies to ensure a more equitable and healthier lifetime.

The report includes a host of next-step solutions and bold ideas to mitigate the challenges of the UK’s ageing population and to enable more of us to benefit from longer lives. These include: financial incentives for exercising, a leg up to adulthood with a ‘decent start’ lump sum payment for school leavers and allowing bereaved or separated individuals who let out bedrooms, to retain the single-person council tax discount.

ILC analysis of the latest ONS health and life expectancy figures shows that in the decade before the pandemic Healthy Life Expectancy had decreased in 86 out of 173 (49.7% i.e. half) of the UK’s local authorities. Health and life expectancies – Office for National Statistics (ons.gov.uk)