Government funding decisions about different elements of healthcare and social care have been made without concern for the combined impact on local areas, an influential panel of MPs has warned today.

A report from the Commons Public Accounts Committee (PAC) into how healthcare funding allocations are made to local areas found huge variations in funding for Clinical Commissioning Groups (CCGs).

Inadequate funding formulae mean three quarters of local authorities are receiving either too much or too little cash, putting the financial sustainability of the health service at risk, the report stated.