Britain's economic fortunes could be boosted by up to 2% if the country were to return to the relatively healthy levels seen in 2014, a new report from the influential thinktank, the Health Foundation, has suggested. This translates to an impressive £57 billion injection into Gross Domestic Product (GDP), with a further £72 billion dividend for public finances.
The Health Foundation is urging policymakers to take a long-term view of health as a vital economic asset, highlighting that a healthy workforce is crucial to driving economic growth. However, the report paints a concerning picture: over the past decade, the UK's healthy life expectancy has taken a worrying two-year hit, leaving it among only five of the world's 21 wealthiest countries to experience such a decline. Moreover, the number of working-age individuals living with a long-term health condition has surged from 11.7 million to 15.7 million in the same period.
David Finch, interim director of health and inequalities at the Health Foundation, stressed the dual benefits of prioritising public health. He noted that restoring working-age health to 2014 levels could unlock £57 billion in economic output and provide a £72 billion boost to public finances through stronger tax revenues and reduced expenditure on social security and the NHS.
The report also sheds light on stark health inequalities across the country, with people living in the wealthiest areas likely to enjoy up to 20 years more of good health than those in the poorest areas. The Health Foundation highlights that ill health not only imposes a significant burden on the NHS but also leads to lost tax revenue and reduced economic output when individuals are unable to work.
While reducing NHS waiting lists remains a Labour government priority, the Health Foundation's research suggests that a more holistic approach is needed. By treating health as an economic asset, policymakers could shift their focus towards preventative measures and public health initiatives, in addition to traditional treatment. This perspective aligns with previous warnings from thinktanks such as the Resolution Foundation, which has noted that poor health has had a significant impact on the UK's challenging public finances.
It's worth noting that health-related spending now accounts for £1 in every £4 of government expenditure, excluding debt interest. This highlights the pressing need to address the nation's health and wellbeing if we are to achieve widespread economic growth.