Claiming that two thirds of health authorities and one third of hospital trusts were in deficit to the tune of £300 million Blair claimed that in the past six years there had been an increase in administration costs of more than £1.5 billion a year, with 20,000 more managers and 50,000 fewer nurses. And, he added: 'Is not the truth that the real challenge of the NHS is how to get money out of invoices, contractors, managers, company cars and pen-pushers and into front-line patient care so that we can rebuild the NHS.'
However, Prime Minister John Major hit back saying the £300 million deficit was 'blown out of all proportion', that the forecast deficit was a relatively small fraction of the NHS budget and that health service funding would increase by £1.6 billion in the next financial year.
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