A "disastrous failure" in the government's strategic planning allowed NHS trusts to indulge in reckless recruitment of extra staff.

MPs criticise 'boom and bust' NHS planning - Guardian article

Extract:

"A "disastrous failure" in the government's strategic planning allowed NHS trusts to indulge in reckless recruitment of extra staff causing unsustainable pressure on the pay bill, a Labour-controlled Commons select committee said yesterday.

Between 1999 and 2004 the number of nurses employed by the NHS in England increased by more than 67,000 - about 340% more than the Department of Health intended. Over the same period the number of GPs grew by 4,098 - or 105% more than the official plan.

The health select committee said: "It was too easy to throw new staff into the task of meeting targets rather than consider the most cost-effective way of doing the job. Large pay increases were granted without adequate steps being taken to ensure increases in productivity in return." Increases in the NHS budget were seen as "a blank cheque for recruiting new staff". This caused the NHS to lurch "from boom to bust"."