NHS England’s March 2026 Strategy Committee update reported discussion of a Productivity Plan aimed at achieving 2% annual productivity growth.

The Committee considered reducing unwarranted variation as a core route to productivity improvement, alongside examples including expanded day-case surgery, scaled diagnostic models and artificial intelligence.

Key Developments

The NHS England Strategy Committee update presented to the March 2026 Board included discussion of a Productivity Plan focused on delivering 2% annual productivity growth.

The Committee identified reducing unwarranted variation as the core strategy for baseline productivity gains. The update also referenced more disruptive innovation opportunities, including expanded day-case surgery, scaled diagnostic models and artificial intelligence.

The productivity discussion formed part of a wider Strategy Committee work programme. The Committee’s project pipeline included the 10 Year Health Plan roadmap, urgent and emergency care strategy, elective care strategy, mental health supply-side review, children and young people’s strategy, specialised services review, the 10 Year Workforce Plan, nursing and midwifery strategy, payment reform, commercial strategy, dental reform, Better Care Fund reform and General Medical Services contract reform.

The Committee also considered payment system reform. The update described emerging thinking on linking payment to patient experience, activity, true service costs and neighbourhood health services.

The productivity update was presented alongside wider March Board papers showing continuing operational and financial pressures. NHS England’s Month 10 financial position reported a £71 million revenue overspend nationally, while systems were overspending by £428 million year to date and 14 systems were forecasting year-end overspends.

Why It Matters

The Strategy Committee update places productivity within the wider NHS delivery agenda for 2026/27. The focus on reducing unwarranted variation links productivity to operational consistency, pathway improvement and more effective use of available capacity.

The productivity plan also sits alongside continuing access pressures reported in the March Integrated Performance Report. The total elective waiting list fell to 7.25 million in January 2026, but Referral to Treatment 18-week performance remained at 61.5%, diagnostics six-week waits stood at 24.7%, and community 52-week waits were 90,049.

The Month 10 finance paper provides further context. NHS England reported that system overspends were largely driven by slippage against efficiency plans, including workforce costs above planned levels.

For NHS leaders, the Strategy Committee update indicates that productivity is being considered alongside access recovery, payment reform, workforce planning and service redesign, rather than as a standalone financial measure.

Source References

• NHS England, Board Committee updates – NHS England Strategy Committee, March 2026.
• NHS England, Month 10 financial position 2025/26, March 2026.
• NHS England, Integrated Performance Report, March 2026.
• NHS England, Meeting of the Board of NHS England – agenda, 26 March 2026.