TNL Features - Politics

Britain’s Sacred Cow: The NHS and Daniel Hannan

by Ted Bromund

The NHS Under Fire

Daniel Hannan is in trouble. The young Tory European MP, who became a YouTube sensation earlier this year for his denunciation of British Prime Minister Gordon Brown as the “devalued prime minister of a devalued government,” has made what can in politics be a serious error: he has challenged orthodoxy in a way that is both substantive and interesting. Boring substantive challenges can be seen off, and soaring rhetoric that says nothing is the stuff of politics, but having a point and knowing how to make it will always raise bellows from the defenders of the gored sacred cow.

The curious thing in this instance is who is doing the bellowing. Hannan has achieved the impossible: he’s brought Gordon Brown’s backers and the Conservative Party into harmony. Health Secretary Andy Burnham described Hannan as “unpatriotic”: it’s curious how dissent is only the highest form of patriotism when it comes from the left. Lord Peter Mandelson, the First Secretary of State, claimed that the British people would find Hannan’s remarks “shocking.” If so, they must have very short memories or very low standards: Mandelson, known as the “Prince of Darkness,” has been forced out of the government twice in the past eleven years on ethics charges. For his part, David Cameron, the Leader of the Conservative Party, described Hannan as an eccentric, and the Leader of the Conservative group in the European Parliament, Timothy Kirkhope told the BBC that Hannan should be disciplined for his comments.

Hannan’s error was to step boldly and simultaneously into two ongoing battles, with the result that he was hit by the cross-fire. The battle in the U.S., to which Hannan thought he was contributing, is the one over health care. Hannan is a vehement opponent of Britain’s National Health Service – which he describes as a “60-year failure” that he “wouldn’t wish on anybody” – and a supporter of U.S.-style health savings accounts. As the NHS is the single-payer system to end all single-payer systems, and as it is one of the two foreign health care systems that Americans have heard of – the other being Canada’s – its deficiencies are potent fodder for opponents of what President Obama is pleased to call health care ‘reform’ in the U.S.

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The other battle is the one in Britain between the Tories and Labour. There, both parties are competing for the title of who can praise the NHS the loudest. Brown’s claim is strong: he has increased spending on health care since 1999/00 by over 50% in real terms. The results, charitably, have been modest: much of the increased spending has been swallowed up by cost pressures and the advancing bureaucratic legions inside the system. Britain’s Office of National Statistics has found that productivity across government as a whole slumped as more money was spent: as the NHS got an outsized budget boost, it turned in a particularly dismal performance. Labour’s error was to believe its own propaganda that the NHS was suffering from heartless Tory budget cuts, and that the solution was more money combined with more top-down control. The latter absorbed the former, and by the end of his tenure in Downing Street, Tony Blair was returning to Tory-style reforms in an effort to contain the exploding costs.

It’s those costs, and the lingering potency of the claim that the Tories want to destroy the NHS, that gave the Conservatives both their political opportunity and their political strategy. After the Conservatives lost the 2005 election under the leadership of Michael Howard, Cameron concluded that the Tories had to return to the legacy of One Nation Conservatism that exemplified the career of Harold Macmillan and, in his post-war tenure, Winston Churchill. The essence of One Nation Conservatism, at least after 1945, was its unwillingness to fundamentally challenge to the post-war domestic status quo established by Labour.

In the end, that was what destroyed it. The post-war world was not forever, and many policies that seemed correct – or at least sustainable – in the two decades after 1945 had become dangerous irrelevancies by 1979. Appropriately, Macmillan ended his career as a bitter critic of Margaret Thatcher’s denationalizations, as if the tattered and ineptly run industries the British government clung to were really the valuable family heirlooms of his imagination.

The new One Nation vision substitutes New Labour for the Labour Party of the post-1945 era. The problem is that, so far, it has not addressed the actual deficiencies in New Labour’s agenda, just as post-war conservatism proved unable to take Labour’s program and make it work. The problem with the nationalized industries, for example, was simply that they were expected to provide more public services – in particular, jobs for union members – than their steadily shrinking productivity could justify. The NHS faced the same dilemma from the very beginning: the British public then, like a substantial part of the American public today, wanted to consume more health than it was willing to pay for. The NHS was launched in 1948 by proposals which estimated it would cost 145 million pounds per year. By the end of the first eight months, the NHS’s annual cost was 295 million pounds. By mid-1950, experts were anticipating that the bill for 1950-1 would be 426 million pounds.

From the start, the NHS was thus pulled terribly and constantly in two directions at once: it had destroyed the variegated system of charities and insurance schemes that the continent’s post-war systems, by contrast, sought to supplement, so it had to pay for everything. But somehow it had to constrain costs too. In 1951, the creator of the NHS, Aneurin Bevan, resigned from his position as Minister of Labour when the Chancellor of the Exchequer, Hugh Gaitskell, introduced prescription charges for glasses and dental care. According to Bevan, this violated the essence of the system, which was that it was free: “A free health service is pure Socialism and as such it is opposed to the hedonism of capitalist society.” Or, as he put it in his speech to the Labour Party in 1943, the welfare state was “a social experiment” that would allow Britain to “assert a moral leadership which will have consequences in every sphere of her activities.”

Of course, the service was not genuinely free: nothing of value is. Free, in this context, was just a synonym for a grant from the Exchequer paid out of general taxation. But for Bevan, using the power of the state to tax money away from the men and women who had earned it had a morality that actually earning money in the first place could never possess. The crucial consideration to him was that, once the NHS was in place, the old shame inherent in accepting public handouts would be abolished, because everyone – bared from the hedonistic pleasure inherent in writing a check to the doctor – would now be a client of the state.

But Bevan’s belief that free service at the point of delivery was a matter not so much of bodily health but of moral purity exercised a continuing and malevolent influence. By turning the NHS into something resembling a religion for milk and water Marxists – which is not an unfair description of Bevan’s political sensibilities – and by crushing the old system beneath the iron but faltering wheels of progress, Bevan at once committed Britain to a single payer system and made criticizing it a form of political heresy. All Gordon Brown did was to take advantage of what appeared to be one of the most prosperous periods in modern British history to remedy the deficiency that had vexed Bevan: the system could never get enough money.

As it turned out, it still can’t: even as Brown blew the doors of the Treasury to pump money into the NHS, private spending on health care in Britain – there is some, in spite of the existence of the NHS – has remained steady at 1.4% of GDP. No amount of public spending appears to be sufficient to meet all needs, or to satiate the public’s demand for better health, a lesson that the U.S. might take usefully to heart. The idea that instituting a British-style system in the U.S. will save money relies on the premise that Americans could be restrained from spending their own money on their own health, and would be willing to accept British levels of government-provided care. Any politician who really believes this is welcome to test the validity of their belief at the ballot box.

Indeed, Britain spends less on health than the U.S. precisely because, like any basically single payer system, the NHS ultimately has to ration what it provides to take account of the public’s unwillingness to pay higher taxes, a reality that accounts for many of the NHS’s failures and horror stories. The NHS’s defenders have the difficult job of protecting it from the reality that Britain is no longer dominated by the old cloth-cap class system that made it so appealing in 1948: the NHS is a top-down system trying to get by in a bottom-up age. But that has not prevented British politicians on all sides from promising to try even harder and attacking the littleness of their opponents’ vision. That is why Brown delights in Hannan’s remarks, which give him the opportunity to demand that even meeting with foreign critics of the NHS be ruled out of bounds by all parties, and to play the old ‘Tory spending cuts’ card. This blissfully ignores the reality that his own Treasury has forecast massive spending cuts after he wins the next election – however unlikely that eventuality now appears – which implies that even a future Labour Prime Minister would have to continue the ceaseless struggle to reduce the cost pressures in the NHS.

The Conservatives, for their part, worry that Hannan’s words will hurt them politically because, as part of their effort to compete with Brown, they have promised to ring-fence the NHS’s budget when they win. This creates a tricky dilemma, because in 2007/8 spending on health (at 92.2 billion pounds) was almost 30% of the budget. It will not be easy to come close to balancing the budget – never mind achieving the surplus that Brown used to aspire to in good times – after declaring a third of spending off limits. The Conservatives are following the strategy that Blair pioneered in the mid-1990s: seize the opportunity of the recession to talk about the budget cuts that the government plans to inflict, emphasize the danger to public services, look askance at tax increases, and remain vague about how that circle can be squared. The difference is that Blair benefited from sound Tory stewardship of the economy before 1997: Cameron is not going to be so lucky. He has achieved a virtual political miracle in bringing the Tory Party back from the brink: now he will need to follow that up with a fiscal hole in one.

What does all this have to do with the health of ordinary Britons and Americans? Not much. Life expectancies in Britain keep on rising, just as they did before Brown’s spending spree. The majority of uninsured Americans, whose numbers are usually exaggerated, have either decided that health insurance is a waste of their money, or rely on free emergency room care. The former strikes me, personally, as insane, and the latter is undeniably inefficient, but the supposed money-saving alternative of preventive care usually leads, the Director of the Congressional Budget Office testified last week, to higher, not lower, spending. By moving the U.S. towards a single-payer system under the guise of the public option, Obama is heading in the direction of the British system, at precisely the moment when that system, after an unprecedented injection of taxpayer money, has failed to deliver the promised results.

But then the left’s demand for the single-payer system in the U.S. is not about health. It is, as it was for Bevan in 1948, about a vision of social morality, which accounts for the eagerness with which its supporters stigmatize their opponents as unpatriotic and evil. That’s a curious basis, even an unhealthy one, on which to build a health care system, which one might suppose should be judged on its results. But it’s an even unhealthier basis for a political system. There is no surer guarantee of fossilization, and eventual irrelevancy, than mistaking particular policies, which need to change, for immutable principles, which need not. If the British people cannot grasp the difference, Dan Hannan will be the least of their troubles.

Dr. Ted R. Bromund is the Margaret Thatcher Senior Research Fellow in the Margaret Thatcher Center for Freedom in the Heritage Foundation. This article is published under his own name.

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  • TomScott
    The vast majority of Brits – on all sides of the political spectrum – are staunch supporters of a system that gives us generally excellent care for relatively low cost. The proportion of GDP spent on healthcare in the UK is about half that of the US – despite the fact that Brits enjoy a genuinely universal service, free to all at the point of use, which helps them to live longer than Americans on average and to have a much lower child mortality rate. For most of us, the idea of moving to the huge costs and rampant insecurity of the US system is just laughable.

    My own experience of the British national heath service has been extremely good, and several members of my family owe their lives to prompt, expert and well-resourced treatment.

    Of course, our system is far from perfect. Margaret Thatcher and her sucessors have a lot to answer for, as their constant political meddling, misguided attempts to introduce 'internal markets' and 'private finance initiatives' (not to mention hugely overpaid management consultants from the private sector) have led to a big expansion in costly bureaucracy at the expense of patient services.

    In reforming the US system, President Obama is fortunate to be able to take the best elements from different systems that have been tried and tested around the world. His efforts deserve support.
  • ECM
    This is a delicious piece of fiction! The NHS is a laughable shambles that is bleeding the treasury dry, killing or seriously harming a citizenry forced to practice self-dentistry, take aspirin to cure critical illnesses and, above all, barring them from actually buying their own care when they are critically ill (freedom: who needs it, right?) and, instead of pointing out some of the really huge problems you, instead, play the British version of "Bush's Fault!" by invoking Thatcher and somehow expect an even moderately-informed person to swallow this noxious bit of cods wallop?

    No sir, I think you will have to do much better in your storytelling than stating that everything is just keen, really, and if it wasn't for that vampire Thatcher and her coven of conservative jackals, why, nobody in Britain would die of anything, ever. (Talk about taking the piss.)
  • TomScott
    ECM, you shouldn't believe everything you see on Fox News. There is a vast amount of shameless misinformation being pumped out about the NHS, and it is dismaying to see just how eagerly this is sluiced up and regurgitated all over the Internet.

    I note that you do not dispute what I said about longevity and child mortality - why attempt to address awkward facts when you have lies, distortion and abuse so readily to hand?

    As I said, the NHS is far from perfect. We have high expectations of it - after all, we pay for it out of our tax. That's why any problems that NHS users experience tend to make big news in the UK (while at the same time providing ammunition for people for whom the idea of a genuinely universal public health service is ideological anathema).

    Your allegation that in Britain we have 'a citizenry forced to practice self-dentistry' is a case in point. It's based, I think, on one 'Dog Bites Man' story that has been endlessly circulated in the echo chamber of the right-wing blogosphere. In fifty years of living in Britain, I have never met or heard of anyone who has ever practised, or considered practising, dentistry on themselves.

    I don't know where you came up with the notion that us Brits are obliged to treat critical disease with aspirin, or banned from purchasing our own healthcare if we prefer, but these are equally silly. People here are free to belong to private health insurance schemes if they wish, or to purchase private treatment on an ad-hoc basis. That relatively few do so reflects the generally high standards of public heath provision, particularly for serious medical conditions.

    Let me tell you something about my own family's experience of the NHS. Both my parents suffered from cancer in their seventies, and both received excellent treatment (surgery, radiotherapy and chemotherapy). More recently, my sister was diagnosed with fairly advanced colon cancer, which was operated on within days of the diagnosis. Thanks to this, and follow-up chemotherapy, she is now in good heath.

    If I, my wife or my children are ill in any way, we can call our local GP and make an appointment to be seen on the same day. If we are too ill to get to the GP, an emergency doctor will make a home visit.

    We were obliged to make use of this emergency service recently when my wife had an episode of severe back pain. As soon as she was in a condition to be moved, she was able to have an MRI scan at our local hospital. This revealed a problem with the discs between two vertebrae in her lower back. About ten days later she had a consultation with a neurosurgeon, who discussed the options for treatment with her, explaining that he would be willing to operate on her and that there was a good chance of improving the condition. However, there was a small risk of complications from the surgery, and if she preferred she could try a course of physiotherapy to see if this would alleviate the problem sufficiently to avoid an operation. This she decided to do, and thankfully it did indeed prove effective. All this treatment was provided free of charge and with very little in the way of bureaucratic form-filling.

    I don't suppose any of this will have the slightest effect on your views of the NHS. But it is this kind of experience that makes us Brits very angry indeed about the ideologically motivated lies that are being told about our system.
  • CSBadeaux
    Why is it always about Fox News? You realize, I hope, that that opening says more about you than anything else.

    Did you know we get a lot of our gripes about NHS from BBC America and from your shows we import and show relentlessly on PBS? Or does that matter?

    I dispute what you said about child mortality, largely because just a few minutes of poking around would show you that our two countries measure child mortality in different ways, not least because we give everything to try to save even the most marginal of cases (even for the uninsured poor! Who knew?), where of course, your system treats them as valueless.

    Our differing life expectancies? Well, as Denis Leary (Irish, so who cares, right?) put it, "Those are the [bad] years!" If I'll only live to 78 here but make it to an utterly infirm 82 there, somehow, I'll deal. Anyone who wants to live longer is heartily encouraged to spend the money to get there.

    People here are free to belong to private health insurance schemes if they wish, or to purchase private treatment on an ad-hoc basis. That relatively few do so reflects the generally high standards of public heath provision, particularly for serious medical conditions.

    Wow, there's a non sequitur.

    Let me tell you some things about my family's experience with NHS. My aunt broke her leg. She received an emergency diagnosis and a splint. Surgery was scheduled for 1 year, 3 months later. She flew to the States and had it done in a week.

    Oh, another? My uncle was diagnosed with a tumor that was "probably" benign. Test results could be expected in six to eight weeks. He flew here, had the test, got the results in 24 hours, (malignant, by the way, Stage 1), had surgery at the end of the week. Minimal chemotherapy (here) to resolve it. He's alive and well. By the time his chemotherapy regime was finished, he had his test results back from NHS. (Malignant, Stage 1, someone will call to schedule a follow-up.)

    Enough anecdotes as singular of data for everyone?

    If I, my wife or my children are ill in any way, we can call our local GP and make an appointment to be seen on the same day. If we are too ill to get to the GP, an emergency doctor will make a home visit.

    If I, my wife, or my children are ill in any way, we can call our local respective GP and make an appointment to be seen on the same day. If we are too ill to get to the GP, an ambulance will be dispatched immediately to take us to the hospital. If we are insured, our insurance is charged. If we are uninsured, it gets eaten by the system.

    I don't suppose any of this will have the slightest effect on your views of the NHS. But it is this kind of experience that makes us Brits very angry indeed about the ideologically motivated lies that are being told about our system.

    Yes, it's all Americans sharing these thoughts.
  • TomScott
    CSBadeaux – I suspect that there's about as much point in addressing your comments above as there would be in arguing with a 9/11 'truther", but (with a heavy sigh) here goes...

    "Why is it always about Fox News?"

    It isn’t always about Fox News. Fox is merely one of many channels through which hysterical misinformation is flung around – and the one on which Daniel Hannan (the subject of the article to which I was responding) was featured. As you may be aware, it forms part of Rupert Murdoch’s multinational media empire, which also has extensive tentacles in the UK. Murdoch makes no bones about how he sees profit and political expediency as a lot more important than truth (see for example his readiness to throw the BBC off his satellite TV network covering China when it aired reports about human rights abuse by the Chinese government).

    “Did you know we get a lot of our gripes about NHS from BBC America and from your shows we import and show relentlessly on PBS? Or does that matter?”

    The BBC has certainly aired plenty of news critical of the NHS – and rightly so. When did I ever say that it is above criticism? As I explicitly said, it has plenty of problems, and I’m glad we have a serious broadcaster that’s effective at exposing these to public scrutiny. That’s quite different from the hysterical nonsense about death panels, euthanasia and so on.

    By the way, the model on which the BBC is run (supported by tax money but at arm’s length from the government and with safeguards against government interference) makes an interesting comparison with the way the NHS is run. As I pointed out in my original post, I think that quite a few of the NHS’s problems are the result of too much political interference, particularly attempts to introduce a market-based model that does not sit well with public health provision.

    I’m sorry if you think that PBS runs BBC material “relentlessly”. That may be because public service broadcasting is relatively underfunded in the States – but hey, who needs it when you’ve got all the news and comment that money can buy over on Fox?

    “I dispute what you said about child mortality, largely because just a few minutes of poking around would show you that our two countries measure child mortality in different ways, not least because we give everything to try to save even the most marginal of cases (even for the uninsured poor! Who knew?), where of course, your system treats them as valueless.”

    I think you’re talking about infant mortality rather than child mortality here, but I’m unable to find any solid information on any measurement differences between the US and the UK. The differences that are often cited are between the US and Austria, Germany, Belgium, France and Switzerland (not the UK). But perhaps you can tell me where you did your minute of poking around to find these differences?

    I can tell you with certainty that our system does not treat marginal cases as “valueless”. How? Because I’ve seen with my own eyes the dedication with which NHS maternity ward staff fight to save the lives of very premature babies. Again, perhaps you could give me your source for this piece of (mis)information?

    “Our differing life expectancies? Well, as Denis Leary (Irish, so who cares, right?) put it, "Those are the [bad] years!" If I'll only live to 78 here but make it to an utterly infirm 82 there, somehow, I'll deal. Anyone who wants to live longer is heartily encouraged to spend the money to get there.”

    Denis Leary may be a fine comedian, but as an authority on the relative merits of health services he’s a little unconvincing (and that’s nothing to do with him being Irish – what was that all about?). In fact, according to the WHO it’s not only life expectancy that’s longer in the UK than in the US – it’s also the quality of health of older people that’s better, as measured by the so called healthy life expectancy indicator (69 years in the US, 71 years in the UK).

    “Wow, there's a non sequitur.”

    Would you care to elucidate? I gave you a simple (and rather obvious) explanation for the fact that relatively few Brits have private health insurance policies. If you have a better explanation for this, perhaps you could share it?

    “Let me tell you some things about my family's experience with NHS…”

    I’m sorry to hear about this aunt and uncle of yours, though on the plus side they’ve supplied you with some marvelously convenient “evidence” for your views on the NHS. Could you tell us why they didn’t opt for private treatment in Britain, though? Anyone who wishes to do this can get an appointment with a cancer specialist at a moment’s notice, as you will see by following this link:
    http://www.privatehealth.co.uk/privatespecialis...

    “If we are insured, our insurance is charged. If we are uninsured, it gets eaten by the system.”

    Really? So you’re saying that the US already has a system that will treat anyone for any serious health condition, effectively free of charge, and that insurance is just for those who wish to pay it? Do you seriously expect anyone to believe this?
  • TomScott
    But answer came there none... Never mind. The silence speaks volumes.
  • CSBadeaux
    I'm sorry, you were clearly having a good time playing with yourself. I elected not to interrupt.
  • trogir
    As a Canadian, I identify entirely with this analysis of the British health service -- kneejerk defense by all of the political establishment of a health system that could stand a great deal of improvement. I also recognize that there are some very good things about our system, as do many Brits see a great deal of good in theirs. However, the gaps in care, the growing shortage of GP's, the lengthening wait times for non-elective procedures and essential diagnostics, and the exploding costs mean something has to change or the whole system will collapse. And then we will be reduced to a system of those who have will take care of themselves, and those without will suffer horribly.
    I am just so struck by the inability to carry out needed reform as a result of empty-headed ideological convictions that from the left preclude any market mechanisms, and from the right any public involvement.
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