The Health and Social Services Department (HSSD) recognises that financial constraints brought about by changing tax legislation will mean that real growth in funding will be extremely limited, certainly for the period 2007-2009. However, whilst appreciating the need for financial restraint, the Department believes that any viable operational plan must be firmly rooted in reality.

The reality is that the cost of providing an adequate quality of health and social care is rising in real terms by between 5 and 9% per annum in almost all developed economies. Recent evidence from the World Health Organisation, Organisation of Economic Co-operation and Development, Office of Health Statistics, etc, to fully support this finding was summarised and reported in the 107th Annual MoH Report (September 2006).

The Department’s Business Plan is, therefore, formulated on the principle of continuing to provide acceptable levels of health and social care at the most affordable cost.