HEALTH spending will increase over the next four years from £103.8bn to £114.4bn.

This will include a 1.3 per cent increase in the resource budget.

However, capital investment in the NHS over the period will fall by 17 per cent from £5.1bn to £4.6bn.

During the same period the administrative budget for the NHS will be reduced by 33 per cent and switched to patient services.

The health settlement includes additional investment to support social care, rising to £2bn by 2014-15 split between the NHS and local councils.

It will be used to help people regain their independence and cut emergency readmissions to hospital.

“Talking therapies” for mental health problems will be expanded and NHS research will increase.

Plans to set up a cancer drug fund of up to £200m to improve patient access to expensive new medication not previously available on the NHS is subject to public consultation.