ICB leaders have warned the Government that clarity on £1bn funding for redundancies is urgently required to move NHS reforms forward.

According to the NHS Confederation's latest annual State of Integrated Care Systems report, 95% of ICB respondents were very or fairly concerned about the impact of the required cost reductions on their ability to deliver against national and system priorities.

NHS Confederation and NHS Providers have called on the Government to use the upcoming Autumn Budget to provide funding to cover the redundancies and other cost pressures or the health service may have to cut staff or services.

Sarah Walter, director of the NHS Confederation's ICS Network, said: ‘Without urgent action to resolve funding for redundancies and provide strategic commissioning support, the NHS risks entering the next phase of reform on unstable footing.'

ICS leaders called on the DHSC and NHS England to urgently clarify funding and timelines for NHS restructuring, warning delays and uncertainty were threatening progress on the Government's 10-Year Health Plan.

The report revealed strong report for the Government's reform agenda. Nearly four in five ICS leaders were confident their system can fulfil each of their four core purposes under the 10-Year Health Plan and over half said they had made progress towards the Government's three shifts (sickness to prevention, hospital to community and analogue to digital) over the past 12 months.

Over three in five thought shifting health spending into the community by 2035 will make the most difference to their local communities and were confident they can build on the work they have already done to deliver a neighbourhood health service.

Cllr Dr Wendy Taylor, chair of the LGA's Health and Wellbeing Committee, said: ‘Local government has a central role in the success of the Government 10-Year Health Plan and councils are already working to co-develop neighbourhood models which are shaped around the needs of local communities.

‘The report rightly highlights the positive legacy of integrated health and care over the past few years in tackling health inequalities and improving outcomes. It is vital that this legacy is built upon as the new neighbourhood health model is delivered.'

Lee Peart is editor of Hemming Group’s Healthcare Management magazine.