Cameron to end on optimistic note with NHS pledge

David Cameron will promise on Wednesday a real-terms rise in health spending in the next parliament, in an attempt to blunt Labour's attacks on the NHS, but which will put a squeeze on other public services.

Mr Cameron will use his speech to the Conservative conference in Birmingham to repeat the Tories' 2010 promise to ringfence the NHS and protect it from the deficit-reduction programme.

The prime minister's final conference speech before the election will attempt to set an optimistic tone, looking beyond public spending cuts and holding out the prospect of tax cuts for working families.

He is also expected to try to pacify eurosceptics in his party; some ministers expect him to confirm plans for Britain to pull out of the European Convention of Human Rights.

Just ahead of the speech, Ukip announced another defection from the Tory ranks - this time a party donor. Arron Banks, a multi-millionaire insurance specialist, told Sky News he was switching his support to Nigel Farage's party because he had "come to the realisation that only Ukip supports my views."

Mr Banks said he would donate £100,000 to the anti-EU party after years of supporting the Conservatives. William Hague, leader of the Commons, said he had never met Mr Banks.

The decision to extend protection of health spending until 2020 means that George Osborne, Chancellor, has a shrinking number of targets for cuts as he attempts to reduce public spending by at least £25bn.

But the prime minister believes the Tories must confront Labour's claims that the health service would be endangered if he wins a second term.

"We know this truth - something Labour will never understand and we will never forget - that you can only have a strong NHS if you have a strong economy," Mr Cameron will say.

His promise of real terms increases in the NHS's English budget of £113bn in the next parliament was expected, not least because an ageing population and growing demand are forcing up costs.

But the ringfence of the NHS - coupled with Mr Cameron's determination to protect pensions - means that Mr Osborne is now looking for savings from areas that have already been cut hard in this parliament.

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He said on Monday he would reduce departmental spending by £13bn, with areas such as defence, business support, police and prisons all facing a further squeeze - especially if Mr Osborne opts to continue his protection of schools spending.

The chancellor also wants to cut £12bn from the welfare budget, including a £3.2bn freeze on working age benefits that will hit more than 5m working households.

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