NHS predicts spare £175bn but withholds cancer drugs

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The news comes as cancer patients who have been told their treatment is too expensive staged a demonstration in central London.

The huge surplus, predicted for the 2008/2009 financial year, is even higher than last year's figure of £1.6billion.

The Government said the money, about two per cent of the overall NHS budget, will stay within the NHS to improve patient care. Health campaigners said it should be spent now on dying patients rather than kept for the future.

David Flory, director general of NHS finance, performance and operations said: "A strong financial position backed by good progress on delivery will continue to ensure high quality services for patients. The NHS must now look forward."

An NHS spokesman added that the surplus reflected "strong financial management."

About 100 kidney cancer patients today staged an emotional protest at the National Institute for Health and Clinical Excellence, which has ruled four life-extending drugs are not "cost effective".

Radio broadcaster James Whale joined the demonstrators in Holborn. He said: "[The Government] seems to have a very strange view of priorities. We can find billions to hold the Olympics but not a few million to save people's lives."

Retired City bank manager Clive Stone, who was diagnosed with kidney cancer last year, said: "If the NHS can spend £300million on removing tattoos or £50million on interpreting services every year why can't they fund these drugs?"

Thousands could have their sight saved by a new drug being made available on the NHS. Nice has recommended the drug Lucentis after a U-turn on guidance that those with wet age-related macular degeneration, the leading cause of eyesight loss in the UK, need to lose sight in one eye before the other could be treated.