Burnham attempts to allay NHS fears

Mr Burnham admitted the health service would face a "challenge" over the next five to 10 years, but said raising concerns of closures or job cuts is "completely premature".

"I think it would be wrong to scare people, that there are big changes coming, that there are cuts and closures. That is not the case with this Government, we have always looked after the NHS. We have said, and the Prime Minister has said, we will carry on increasing health spending," he told BBC Breakfast.

His remarks came after the NHS Confederation, which represents 95% of all NHS organisations, said the next two years will be "tough but manageable" but "the position beyond 2010/11 is very different and extremely challenging".

Its report - Dealing with the downturn: The greatest ever leadership challenge for the NHS? - said the service should expect a funding shortfall of £15 billion in real terms due to the impact of the recession and rising costs.

"With little or no cash increase, from 2011/12 the NHS will need to plan for real terms funding to fall by 2.5-3% per annum," the study said.

"This is equivalent to a cut of between £8-10 billion over the next Comprehensive Spending Review and up to £15 billion over five years."

The report called for immediate action if the service is to continue to keep to its founding principles of providing free care to everyone at the point of need, and warned against "diluting" the quality of patient care and extending waiting lists, or making cuts to training budgets.

Mr Burnham continued: "The (NHS) Confederation are right to say that we have seen a decade where health spending here has caught up to the European average, and obviously it won't continue to grow at the same rate in the next period. So they are right to say let us plan, we have got time to plan, and we have got time to get this right.

"But I think people can see now that Labour have looked after the NHS in Government, and will carry on doing so."