What the Autumn Budget 2025 means for health and social care

The Chancellor of the Exchequer, Rachel Reeves, has announced the Autumn Budget for 2025. We look at what it means for health and care and how the plans could affect people in North Yorkshire.
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The government has released its Autumn Budget for 2025, setting out national spending plans for the year ahead. While most of the attention was on the wider economy, the Budget includes several announcements that could influence how people receive care across England. For communities in North Yorkshire, these plans may shape how easily people can reach services, how well those services run and the support available for those with ongoing health needs.

Before looking at the detail, the key points include proposals for new neighbourhood health centres, investment in NHS technology and a continued freeze on prescription charges. Each of these may have implications for daily access to care, particularly in rural parts of the county.

New neighbourhood health centres

A major part of the Budget is the plan to develop up to 250 neighbourhood health centres across England. The aim is for around 120 these to be open by 2030.

These centres are designed to bring several services together under one roof, such as GPs, community nurses, dentists and pharmacists. For many people, especially those living in rural areas or juggling several health appointments, this could mean fewer separate trips and a more joined up experience.

The centres will be partly funded through a public and private partnership model. This simply means the government works with private companies to help finance and build the sites, while the NHS continues to deliver the care inside them. The government says it will design this approach carefully to avoid problems seen in earlier schemes.

If neighbourhood centres are developed in North Yorkshire, they could help people who currently need to travel long distances or attend multiple clinics for routine support. They may also make it easier for people with long term conditions to receive care in one place.

Investment in NHS technology

The Budget also includes three hundred million pounds of new funding to improve NHS technology. This investment is intended to replace outdated systems, modernise digital tools and make it easier for staff to share information safely between services.

For patients, this could lead to fewer delays, clearer communication and a smoother experience. It may also reduce the frustration of having to repeat the same information to different teams or wait for records to be transferred.

Better technology can also support earlier diagnosis, faster results and more reliable follow up. While these improvements will take time to roll out, they have the potential to make a noticeable difference to people across North Yorkshire.

Implications for people with long term or serious conditions

These national plans may be especially important for people who live with long term or serious conditions, such as cancer.

Macmillan Cancer Support has highlighted that neighbourhood health centres and improvements to NHS technology could help people receive more of their care closer to home, with fewer journeys and a more joined up experience between different services.

The government has also said it intends to prioritise opening the first centres in areas with the highest levels of need, which may help reduce inequalities in access to care.

Workforce matters

The changes announced in the Budget will affect not only services, but also the staff who deliver them. NHS Employers has noted that pressures on the workforce remain high. As plans such as new neighbourhood centres and digital improvements progress, the capability, resources and support available to staff will be vital. Without a strong and well supported workforce, it will be harder to achieve the improvements the Budget aims to deliver.

What stays the same

Some things remain unchanged. Prescription charges in England will stay frozen until 2027, with the cost of a single prescription continuing at nine pounds ninety. This decision provides stability at a time when many households are managing rising living costs.

The Spending Review earlier this year (June 2025) set out the longer term funding plans for health and social care, which provide the wider context for the announcements in this Budget. Read more about the Government's Spending Review and its impact for health and care.

Overall funding for health and social care in England is expected to rise slightly over the next few years, although higher inflation means the increase is smaller than originally planned. This may continue to place pressure on services.

What this means for North Yorkshire

Taken together, the Budget offers a mix of continuity and planned development. The proposals for neighbourhood health centres could make it easier for people to reach the care they need, especially in rural communities. The investment in technology may help services work more smoothly and reduce some of the common frustrations people experience. The focus on areas with the greatest need may also help improve fairness in access to care.

Further detail is expected as the government sets out how these plans will be delivered and where the first sites will be located.

Other measures linked to public health

The government also plans to extend VAT to some sugary milk drinks and increase taxes on online gambling. While the impact on public health is not yet clear, these measures aim to encourage healthier choices.

In summary

The Autumn Budget provides a glimpse of how health and care services may change in the coming years. Healthwatch North Yorkshire will continue to listen to people’s views and follow the impact of these national decisions on local care. We want to understand what matters most to you, and we encourage people across the county to share their experiences with us as these plans progress.

Sources: 

Information in this article draws on briefings from the NHS Confederation, NHS Employers and Macmillan Cancer Support on the Autumn Budget 2025.

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