Historically, the NHS has required an average year-on-year funding rise of 4% to meet increased demand and costs. The Office of Budget Responsibility projects that a 4.3% increase will be needed going forward. But the NHS is not alone in needing funding increases - the OECD forecasts upwards healthcare spending pressure affecting countries worldwide.
In contrast, the Department of Health budget is scheduled to grow by only 1.1% per year between 2009/10 and 2020/21. This mismatch between demand and actual funding has led to the deterioration in key performance figures mentioned above.