Chancellor of the Exchequer, Phillip Hammond yesterday pledged an extra £650m to social care services in the UK, as part of a broader £20.5bn promised spending on the NHS.

In a move that underpins a broader, long term commitment to support social care in the UK, The Chancellor signalled more radical moves to be published in a green paper later this year. With 55% of adults believing that an additional, specific tax to fund social care should be established, there is broad public support to underpin vital services in this part of the health system.

The government also responded to calls for better funding of mental health services, with an additional £2bn of extra funding for this area.

Oliver Harris, CEO, Montreux Capital Management (UK) stated: “We welcome the extra commitment from The Chancellor and are confident we will see further long term spending commitments later this year. The government has consistently supported this area, even in times of austerity and it is encouraging to see funding extended yet further.

We know that the right type of care, delivered away from a hospital bed and in the community, not only improves patient outcomes but is also more cost effective for the government. Good quality care delivered by the private sector from efficient providers will mean a better and more efficient care market. At Montreux we are working to consolidate the sector so we can deliver that objective”