A smile from the Chancellor?

Abstract

Nigel Lawson once confided that he finds it difficult to smile. The shape of his mouth, which droops at the edges like Zapata moustaches, forms permanent scowl. It remains even as he distributes his newly discovered largesse. Last week we could discern Herculean effort from the Chancellor to produce at least self satisfied grin. He was in position, at last, to give money away, to invest in public utilities without stoking up inflation. The National Health Service is to be one of the beneficiaries of the melting of Nigel's heart. For next year there is an extra ?250 million over and above spending increases already planned to meet inflation. The following year further ?300 million will be injected, bringing total spending to ?16*5 billion by 1988. Health authorities are also to be allowed to keep the benefits of their efficiency drives, estimated at ?150 million this year. In the cold light of dawn, however, the spending spree seemed to fall short of its billing. The cash increases will be more than that required by inflation, but only 1% more. The local health authori? ties still have to meet the recent pay rises and price increases from within these resources. This will consume half the extra money next year. More is needed, members of parliament pointed out, to allow some growth in the service, to allow room for some improvements, cover new technology, and cope with the increasing number of elderly patients. Mr Lawson may indeed be throwing money around in fashion unusual by his standards, but not enough to remove the incentive from the health authorities to find extra necessary funding else? where. The government is expecting a very substantial increase in the receipts from the sales of surplus land and buildings, now running at ?50 million year. Mr Lawson said that the extra cash he had released should enable health authorities to meet demographic pressures and to deliver improvements in services as well. And he was not smiling when he said it, either.