The NHS spent £1.2bn on administrative and clerical staff last year, compared with £700m on cancer drugs, according to the Tories.

The Conservatives said primary care trusts are spending more on administration and twice as much on agency administration staff as in 2003-04, with the cost standing at £115m a year.

The figures show PCTs are also spending £139m on management consultants, compared with just £53m in 2003-04

Shadow health secretary Andrew Lansley said: “Every penny spent on unnecessary management and paperwork is a penny less to provide better care for patients.”

But health minister Ann Keen defended the spending, saying it is up to NHS organisations to decide on a budget and value for money.

She said: “Individual NHS organisations decide how best to invest their resources to ensure local people get the best possible care and services. We expect organisations to consider value for money and patients’ interest in all aspects of their expenditure.”

NHS Confederation chief executive Steve Barnett said: “Responding to major national policy changes often requires local planning and external advice and in many cases the use of this kind of expertise can help to drive down costs in the long term.”

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