Chancellor, Rachel Reeves, announced yesterday (Wednesday 11 June) a record £29 billion investment package for the NHS as part of the Spending Review, with a headline £10 billion boost earmarked for technology and digital transformation.
Positioned as a key enabler of the government’s Plan for Change to cut waiting lists, modernise services, and improve patient care, the move signals the central role digital will play in the NHS’s future.
Announcing the plans, the Chancellor called for a “resilient, modern, digitally-enabled health service,” with funding to accelerate innovation in areas such as AI, enterprise-grade systems integration, and operational efficiencies.
Digital funding welcomed, but caution on delivery
Healthcare technology leaders have cautiously welcomed the funding increase but emphasised that investment alone won’t resolve the NHS’s operational and patient care challenges.
Dr Harry Thirkettle, Director of Health and Innovation at Aire Logic, a software company, described the tech uplift as a positive step but warned against complacency:
“From a health perspective, the injection of day-to-day funding and a 50% increase in tech budget is welcome as the service seeks to recover from the years of austerity. But increased budget — even if 'modest' in real terms — sets public expectations higher. And the public will expect services to deliver, not on headlines, but by how it feels when they engage with the health and care system.”
Dr Thirkettle also highlighted the risk of underfunding essential digital infrastructure, noting: “I hope a good proportion of this goes to SMEs who are the beating heart of innovation… I note that budgets for this infrastructure appear to have remained mostly flat, which creates a risk.”
Similar concerns were voiced by Dr Rachael Grimaldi, CEO of CardMedic, a digital communication solution company, who questioned whether initial project funding would be sustained to enable meaningful transformation:
“It's all well and good giving initiatives money for three years, but meaningful healthcare transformation requires sustained commitment beyond initial pilot phases. Without addressing the systemic issues around procurement, delivery, and long-term strategic planning, increased funding alone won't solve the complexities we face.”
Steve Wightman, Managing Director of Access Health and Integrated Care, a software company, praised the scale of the commitment but highlighted the need for a more joined-up approach:
“£29 billion for the NHS and £10bn for digital investment is great news for healthcare. However, it’s at the expense of other core public services, notably social care.”
Wightman added that digital transformation should empower providers to deliver integrated services across settings:
“We really need policymakers to stop looking at the NHS in isolation and start making changes that align with the Department’s moniker, of health and social care.”
David Challinor, Managing Director of Chrystal Medical, pointed to the importance of
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