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I agree with 6.31am - it is a politically motivated attempt to address the "Burnham Plan".
The only place that savings of this magnitude can be realised is in secondary care through reduction of beds (which have been full for past 18 months).
I can't see widespread political support for bed closures in local hospitals as we approach the election so leaves the system open to the overspends articulated in 7.55am post.
We need some real new non-recurrent funding to transform primary and community services over 12 months through "double running costs" to enable the savings that Paul talks about to be realised.