THE WORLD's biggest quango - NHS England - will be abolished in a bid to cut red tape and "free up" cash for doctors and nurses, Sir Keir Starmer has announced.
The PM said the move will put the NHS "back at the heart of Government where it belongs".
His comments came as he delivered a speech in Yorkshire on reshaping the “flabby” state and slash the cost of bureaucracy.
NHS England is the world's biggest quango - an unelected body in charge of managing England's health service.
Set up in 2013, it controls a whopping £200 billion-a-year budget, overseeing hospitals, GPs, and healthcare across the country.
Unveiling the move, the PM said: “In Government there was a clear moment when the Tories crossed the Rubicon, it was early, and it was decisive and it sent a signal across Whitehall that was never undone.
READ MORE ON POLITICS
“So today I’m going to reverse it because I don’t see why decisions about £200 billion of taxpayer money on something as fundamental to our security as the NHS should be taken by an arms-length body, NHS England.
“And I can’t in all honesty explain to the British people why they should spend their money on two layers of bureaucracy.
“That money could and should be spent on nurses, doctors, GP appointments.
"So today I can announce we’re going to cut bureaucracy across the state... I’m bringing management of the NHS back under democratic control by abolishing the arms-length body NHS England.
"That will put the NHS at the heart of government where it belongs.”
The major shake-up will see NHS England’s functions absorbed by the Department of Health and Social Care, ending years of duplicated roles and excessive paperwork.
Health Secretary Wes Streeting blasted the existing set-up, saying: "This is the final nail in the coffin of the disastrous 2012 reorganisation, which led to the longest waiting times, lowest patient satisfaction, and most expensive NHS in history.
“When money is so tight, we can’t justify such a complex bureaucracy with two organisations doing the same jobs. We need more doers, and fewer checkers, which is why I’m devolving resources and responsibilities to the NHS frontline."
Sir James Mackey, incoming NHS England boss, admitted the reforms might feel "unsettling" but promised they'll deliver "the biggest bang for our buck" by getting cash directly into frontline care.
The shake-up will immediately start moving NHS England’s duties back under direct ministerial control, with the Government saying it will save hundreds of millions a year to tackle waiting lists and boost patient care.
The move comes amid growing pressure on the government to tackle spiralling waiting times, improve patient satisfaction, and restore public confidence in the NHS.

