Exclusive: Labour will be ‘pragmatic’ on private outsourcing

While he “doesn’t want” to see more elective activity carried out by private providers, Jonathan Ashworth told HSJ he would permit outsourcing in the early period of the next parliament.

Labour has made its opposition to “privatisation” and private provision of NHS services central to its general election campaign. But it has also pledged to slash the waiting list for elective care.

Cuts to waiting lists have often been achieved via more patients being treated in private units, partly due to a lack of capacity in NHS hospitals, and restricting private operations would probably mean some patients waiting longer.

Asked whether he would be comfortable with this in the short term, the shadow health secretary said: “I’m a pragmatist… I understand in the short term, that I’m not going on day one to put in place a blanket ban on that, when I’d need to get elective performance back to something I think the British people find acceptable.”

He also cited mental health crisis services, many of which are currently run by private providers.

But he added: “But let me be clear, it’s my intention that NHS capacity is built up so we don’t have to use private providers in the way they’ve been used in recent years.”

Labour would also ensure that compulsory tendering of NHS contracts would be scrapped, with Mr Ashworth saying: “If you’ve got Virgin Care taking clinical commissioning groups to tribunals or whatever because they’re unhappy about a tender process, I just think that’s not an acceptable way to run a health service. So that, very clearly, comes to an end.”

HSJ spoke to Mr Ashworth after he and shadow chancellor John McDonnell presented Labour’s plans for the NHS on Wednesday, which include a 3.9 per cent annual real terms increase to NHS England’s budget, compared to the 3.4 per cent offered by the current settlement.

Asked about the pensions crisis which is currently threatening to derail hospitals’ staffing plans ahead of winter, Mr Ashworth would not commit to scrapping the “taper” mechanism which has disincentivised many clinical staff from working additional shifts, by increasing their tax bill.

He said the party would “urgently review” the taper, adding: “We need a fair solution to this. We’re committed to reviewing this properly and consulting on it, and working with all staff on it. Because although it hasn’t had as much prominence, lower paid staff have got issues with the pension as well. The biggest leavers from the pension scheme are the lower paid staff.”

The policy is also currently under review by the government.