1. Neighbourhood Health Centres: 100 funded now with long-term ambition reaffirmed 

The government has committed to funding and delivering at least 100 Neighbourhood Health Centres by 2030. These will act as “one-stop shops,” bringing together primary care, community diagnostics, mental health services and preventative care under one roof. The ambition to reach around 250 centres by 2035 remains a longer-term goal dependent on the outcome of the next General Election.  

Done well, these centres could significantly improve access, reduce unmet need and pressure on urgent and emergency care. But unlocking capital is only the beginning. The impact will depend on how local leaders shape these centres around the needs of their populations. Each area will need to clarify service priorities, align pathways and ensure centres are integrated with existing care models. This will require substantial further work: population health management to understand need; demand and activity modelling to appropriately size services; commissioning plans to align resources; and coordinated workforce planning across primary, community and diagnostic teams. Pathways will need to be redesigned to ensure these centres deliver truly integrated, accessible care rather than simply co-locating services. 

2. Public–Private Partnerships: a new shift in NHS infrastructure funding 

The Budget introduced clearer approval for the use of private capital as part of the Neighbourhood Health Centre programme. The Treasury has agreed that private borrowing can be used on a case-by-case basis for these schemes, marking the first substantive reopening to private finance for NHS infrastructure since PFI/PF2 were halted in 2018. This is a notable shift in an environment where the NHS has been severely under-capitalised for years. The Treasury has stressed that new models will apply lessons from past public-private partnership and must demonstrate value for money, but the direction is clear: private capital will supplement public investment to accelerate delivery.  

For the NHS, this means becoming more confident and capable in working with external partners. Systems will need robust commercial awareness, clear governance structures and strong approaches to evaluating risk, cost, delivery models and long-term benefit. Many organisations may need to adapt operating models to reflect new partnership structures. 

3. Digital Productivity: a significant investment reinforcing an existing priority 

The Budget confirmed £300 million of new capital investment to improve digital productivity in the NHS, a substantial and welcome uplift. The funding is meant to support automation of administrative tasks, upgrade outdated technology, improve access to patient information and enable more coordinated communication between teams. These changes can make a real difference to staff workload, clinical efficiency and patient experience. While the focus on digital productivity aligns with priorities already set out by NHS England, today’s announcement provides important new capital to accelerate progress.  

The task for systems now is to ensure this investment is tied to wider service redesign. Strengthening digital roadmaps, data governance and staff capability will be essential to unlocking the full benefits. 

Conclusion

Today’s Budget strengthens the financial foundations for NHS reform, providing firm capital for the first wave of Neighbourhood Health Centres, reopening access to private investment for the first time in years, and injecting significant new funding into digital productivity. These commitments create genuine opportunities for improvement, but they will only translate into better care if systems plan carefully and collaboratively.

If you’d like to discuss how The PSC can help navigate the implications of the Budget for your organisation, please get in touch.