The NHS will need extra funding from government if the Iran war drives large price increases, which could amount to a “huge shock”, Sir Jim Mackey has warned.
Speaking to HSJ, the NHS England CEO said he was “very worried” about the rising costs and supply chain challenges being driven by the conflict.
He said the NHS and Treasury would need to review the consequences, and added: “The idea that [the NHS] just swallows [a significant] impact is just not reasonable”.
The NHSE boss also revealed every integrated care board except one had submitted a balanced plan for 2026/27 – with only around 10 providers contributing to a total planned deficit of roughly £420m. The figures are still being finalised, but will represent a big reduction on the £2.5bn deficit plan this time last year.
However, these plans have not factored in additional costs likely to result from steep rises in energy prices, and other inflation caused by the Iran war.
He said some trusts saw steep energy cost rises when the Ukraine war began, and: “We could be in that territory again, where it’s just a massive number for [covering the costs].”
Date: 8 April