Enhancement: Budget Allocation Boost for Social Care and Technical Innovations within the NHS
The UK Government's Spending Review 2023, unveiled on 11 June by Chancellor of the Exchequer Rachel Reeves, promises significant investments and reforms across the MedTech, healthcare, and social care sectors. The aim is to modernise the National Health Service (NHS) through innovation, digital health, and faster adoption of new technologies.
Key aspects of the review include substantial funding and multi-year investment of over £2 billion in government funding, alongside UK Research and Innovation (UKRI) support, to accelerate life sciences, including MedTech innovation, clinical trials, and digital health integration.
The government aims to reduce the time to set up and start commercial clinical trials to fewer than 150 days by March 2026, facilitating quicker access to new treatments. The introduction of the NHS innovator passport system by 2026 will create a digital fast-track to reduce red tape and duplicative evaluations across NHS trusts, enabling faster scaling of proven MedTech solutions and reducing NHS resource burdens on procurement and compliance.
From April 2026, the National Institute for Health and Care Excellence (NICE) will broaden its appraisal process to cover devices, diagnostics, and digital products, mandating NHS funding for approved innovations. This aims to shift resources from outdated treatments towards more effective technologies.
National standard guidance on value-based procurement for MedTech will be implemented, including outcome-based models that reward proven clinical and economic benefits. The NHS plans to become the world’s most AI-enabled health system, integrating AI into clinical pathways, widespread use of wearables by 2035, and expanding genomic sequencing in newborns and adults to enable personalised prevention and care.
The spending review also includes the launch of a new ‘HealthStore’ marketplace within the NHS App, making approved health apps more accessible to patients nationwide, targeting areas like dermatology, physiotherapy, and mental health support. The creation of a new Health Data Research Service in partnership with the Wellcome Trust, backed by up to £600 million, will unify genomic, diagnostic, and clinical data at population scale to drive innovation and research.
Life sciences manufacturing will receive £520 million for the period 2025-30 to boost resilience. More than £4 billion in additional adult social care funding has been pledged, with a focus on the Health Department's budget increasing, particularly for social care and NHS technology.
However, challenges remain, such as deciding how to deliver the most value from the allocated funds and addressing high energy costs faced by British businesses. The independent commission on adult social care is not expected to fully report until 2028.
Barbara Harpham, Chair of the MedTech Growth Partnership (MTG), welcomes the government's continued investment in the NHS. A new Life Sciences Sector Plan is on the way, and training reforms, including embedding entrepreneurial and industrial skills into STEM curricula, are essential for developing the next generation of engineers and innovators.
Sarah Woolnough, Chief Executive of the King's Fund, notes the government's prioritization of health services by continuing to increase spending on the NHS. The Chancellor's commitment to introducing a Fair Pay Agreement for social care workers is welcomed, but questions remain about the cost and impact on other fundamental improvements to the social care system.
Duncan Lugton, Head of Policy and Impact at IChemE, emphasises the need for addressing high energy costs faced by British businesses and the importance of scaling up scientific innovation. The NHS 10-Year Plan will receive a £29 billion boost by 2028, and a new £10 billion fund for technology and digital transformation has been announced.
In conclusion, the Spending Review 2023 marks a strategic push to speed up adoption and diffusion of MedTech innovations, embed digital and genomic health, and enhance preventive, personalised care in the NHS and social care sectors. This is aimed at improving patient outcomes while optimising NHS resources in the face of growing healthcare demand.
- The UK Government's Spending Review 2023 proposes to invest over £2 billion in government funding and support from UK Research and Innovation (UKRI) to accelerate MedTech innovation, clinical trials, and digital health integration, as part of their plans to modernize the National Health Service (NHS) through innovation, digital health, and fast technology adoption.
- The government aims to reduce the time to set up and start commercial clinical trials to fewer than 150 days by March 2026, to facilitate quicker access to new treatments, and is introducing the NHS innovator passport system to reduce red tape and duplicative evaluations, enabling faster scaling of proven MedTech solutions.
- From April 2026, the National Institute for Health and Care Excellence (NICE) will broaden its appraisal process to cover devices, diagnostics, and digital products, mandating NHS funding for approved innovations, shift resources from outdated treatments towards more effective technologies, and implement national standard guidance on value-based procurement for MedTech.
- The spending review includes the launch of a new ‘HealthStore’ marketplace within the NHS App, making approved health apps more accessible to patients nationwide, and the creation of a new Health Data Research Service in partnership with the Wellcome Trust, aimed at unifying genomic, diagnostic, and clinical data at population scale to drive innovation and research.
