Backroom operational costs within Scotland's National Health Service (NHS) have increased by £58 million in one year, reaching a total of £1.1 billion annually. This rise in spending on administrative functions such as human resources, finance, and communications has drawn criticism, as opponents suggest the funds could instead be allocated to hiring thousands of nurses for frontline care.
The Scottish Government's analysis indicates that the cost of these corporate functions within NHS boards escalated from £1.084 billion in 2023-24 to £1.142 billion in 2024-25. Based on an average starting salary of £34,544 for a band five nurse, the annual corporate expenditure is equivalent to the cost of employing approximately 33,000 nurses.
Scottish Labour health spokesman Dame Jackie Baillie stated that the significant sum spent on corporate bills, ultimately borne by taxpayers, could have been used for essential nursing positions. She called for a streamlining of NHS boards to reduce bureaucracy and redirect resources towards frontline services, emphasizing the need for wise spending to support patients and staff.
The £1.142 billion expenditure in 2024-25 was itemized as follows: £445.5 million for digital and data, £442.8 million for property, £106.1 million for human resources, £105.1 million for finance, £27.1 million for commercial activities, and £15.6 million for communications. Despite the increased spending, the number of full-time equivalent staff in corporate roles saw a marginal decrease from 11,570 in 2023-24 to 11,530 in 2024-25. The count of temporary workers also fell from 230 to 130 during the same period.
Scottish Conservative health and care spokesman Miles Briggs criticized the SNP government's priorities, noting that the increase in back-office spending occurred while patients face lengthy waiting times and NHS staff report exhaustion. He urged for scrutiny of these millions and a reallocation of funds to frontline services and staff support.
When combined with corporate costs from other Scottish public sector bodies, the total expenditure on backroom functions across the public sector reached £1.7 billion in 2024-25, an increase of £83 million from the previous year. The Scottish Government has set a target to reduce back-office function costs by £1 billion annually by the end of the decade, following earlier, unfulfilled promises to reform the public sector for greater efficiency.