Digital health sector reacts to ‘record’ investment in NHS

Chancellor Rachel Reeves announced that the government is investing up to £10bn to bring the NHS “into the digital age” as part of the latest spending review. 

The funding boost is alongside a £29bn real terms increase in annual NHS day-to-day spending from 2023-2024 to 2028-2029, which the government said will get the health service “back on its feet and fit for the future”.

This will take NHS spending to £226bn by 2028-2029, equivalent to a 3% average annual real terms growth rate over the spending review period.

We asked healthcare leaders and key figures from the digital health sector for their reactions to the news. Here’s what they had to say:

Jennifer Dixon, chief executive, Health Foundation:

“Given the economic and financial challenges facing the government, a real terms funding increase of 3% a year is a good settlement for the NHS. But how far the money stretches and how much it benefits patients – will depend on how much is needed to fund pay settlements for NHS staff and how well the money is spent.

“The additional funding for technology is welcome as a first down payment on a long-term settlement to digitise the NHS.

“The focus needs to be on implementation to ensure the NHS realises the benefits and patients get the 21st century care they have been promised.”

Steve Wightman, managing director, Access Health and Integrated Care:

“Great news for the NHS – £29bn additional funding per year is unprecedented. However, it’s at the expense of other core public services, notably social care.

“To meet the government’s three key shifts and help tackle this funding disparity, there needs to be investment in empowering providers to use digital to scale integrated services that wrap around the individual, irrespective of whether they’re in a hospital, their home or a care setting.

“We really need policymakers to stop looking at the NHS in isolation and start making changes that align with the Department’s moniker, of health and social care.”

Tom Whicher, chief executive and co-founder, DrDoctor:

“The £29bn boost to NHS funding, spread over several years, is a welcome step towards improving the NHS for the long haul. Finally, a government is taking a more thoughtful approach, focusing on giving the NHS the resources it needs for real, lasting change.

“The recent upgrades to the NHS App show that digital tools have the potential to make a big difference by giving patients more control and streamlining the way we access care – a positive hint at what’s to come in the imminent 10 year health plan.

“But, for the government to effectively change the public’s relationship with the NHS, it’s critical that some of this investment is allocated to improving interoperability within the system – a lot of tools are already in place, now it’s about ensuring that all platforms managing patient data speak to core functions – like the NHS App – for scaled, consistent access to care across the country, improving both patient outcomes and clinician efficiency.”

Nick Lansman, chief executive and founder, Health Tech Alliance:

“The Health Tech Alliance welcomes today’s spending review as a clear indication that health remains front and centre of the government’s agenda.

‘Our members will welcome the doubling of the NHS technology budget and a new £10 billion fund for technology and digital transformation – a watershed moment for health tech adoption.

“The dedicated support for life sciences and advanced technologies with £520 million allocated for the life sciences manufacturing fund, is a foundation for the UK to lead on getting innovation to patients faster, improving patient outcomes and using health tech to tackle global health challenges.

“These commitments, combined with the anticipated announcements in the 10 year health plan, give us reason to be optimistic.”

Dr Katherine Halliday, president, Royal College of Radiologists:

“We are pleased to see a significant funding boost for the NHS, including investment in much-needed technology and digital infrastructure to futureproof the health service.  

“We hope to see this reduce agonising waiting times for patients and relieve pressure on hardworking staff.

“The continued investment in scanners and other essential equipment is a positive step towards this goal. Its success depends on recruiting, training and retaining the diagnostic and cancer workforce, which faces severe shortages of doctors.

“Today’s funding boost will go a long way to revitalise the NHS, and now the forthcoming 10 year health plan and NHS Long Term Workforce Plan must also set out robust plans to ensure there are enough staff to provide the care patients deserve.”

Ram Rajaraman, healthcare and life sciences industry lead, Quantexa:

“For the government to succeed in cutting waiting lists it should ringfence some of this £29bn investment to deliver on its pledge to build a ‘single patient record’.

“While there are many factors exacerbating the backlog improving data sharing between departments and trusts would save the NHS 140,000 hours of staff time every year.

“Accurately linking patient data means staff can reduce the significant time they spend chasing records, repeating tasks or re-collecting patient history.

“A single patient record will also enable wider innovation that will help improve outcomes and reduce waiting lists.

“Once patient data is unified and includes wider determinants of health such as environment and family socioeconomic history, the NHS can implement a full 360-degree view on which to build AI solutions to track population health, identify service gaps and allocate resources more effectively.”

John Ramsay, founder and managing director,  Social-Ability: 

“On behalf of the social care sector, I’m once again disappointed by the government’s lack of focus and meaningful reform. Shocked? No. 

“The first-ever fair pay agreement is a step forward—but nowhere near far enough to fix a broken care system. 

“Despite Rachel Reeves calling social care fundamental to healthcare and multiple mentions of Carers Week during Prime Minister’s Questions, there’s still no clear plan or reform programme. The spotlight remains firmly on the NHS.

“Investment in the NHS alone won’t fix the problem. Without proper support for care homes and staff, people’s wellbeing will deteriorate, and pressure on hospitals will become unbearable. 

“Social care cannot be an afterthought in the future NHS—it must be central.”

Alison Gardiner, chief executive and founder, Sleepstation:

“The scale of today’s NHS settlement reflects just how vital a functioning health service is to national recovery.

“But as Sir Jim Mackey rightly said, this isn’t a moment to take our foot off the pedal – especially in mental health, where need continues to outpace provision.

“As we build a more resilient NHS, the £10bn tech investment commitment must prioritise treatments that are evidence-based, cost-effective and accessible.

“That includes better support for people with long-term conditions like insomnia, where scalable digital care is already delivering results.”

Kevin Shah, head of sales EMEA, Annalise.ai:

“Annalise.ai welcomes the government’s commitment and vision to recognise the transformative role of AI imaging diagnostic technology in supporting the NHS, as seen in today’s comprehensive spending review.

“Through the announcement of up to £1 bn of investment in NHS technology and digital transformation, it is encouraging to see the government’s ambition for tech – including AI – as a critical tool to improve public services and drive economic growth being realised.

“With the Royal College of Radiologists warning of a 40% shortage of NHS radiologists by 2028 and a reliance on costly private outsourcing (£216m in 2024), there is an urgent need for technologies that support clinicians to work more efficiently.

“Now is the time to support NHS sustainability and patient outcomes through the deployment of trusted and tested tools.”

Julian Coe, managing director, X-on Health:

“The NHS budget boost in the spending review is welcome and if combined with the delivery of the upcoming 10 year health plan can translate into real progress that patients feel and experience. The NHS must move on from being focused on the preservation of the current status.

“In primary care, the patient dissatisfaction with access to GPs won’t simply vanish through increased national funding or one-size-fits-all solutions.

“Real change happens at the practice and neighbourhood level through ground-level work to simplify technology with better-integrated tools to embed ongoing workflow improvement through real operational support.

“Technology providers like ourselves need to play their part and step up to enable providers to effect change.”

Rich Pugmire, chief executive, Answer Digital:

“The funding announcement, including the NHS technology budget increase, from the chancellor’s spending review is essential but this alone won’t solve the NHS’s challenges and pressures.

“Progression must go hand-in-hand with funding to ensure real impact, the NHS needs to advance and embrace opportunities ahead through conscientious transformation alongside investment.

“As we anticipate the 10 year health plan, leaders must leverage existing resources smartly and responsibly.

“One of the real tasks ahead is identifying and deploying innovative AI data solutions that work across the breadth of diverse processes and legacy tech within the health service, the NHS must leverage industry partnerships to take best advantage of this opportunity.”

Nick Wilson, chief executive, System C:

“While increased spending in health and social care is welcome, it won’t solve the fundamental problem: demand continues to outstrip supply.

“Our most powerful tool to bridge this gap is innovation, especially AI. We can dramatically boost productivity and quality using AI by eliminating “busy work” that no one wants to do. Clinicians and social workers didn’t enter their professions to spend hours on documentation.