NHS chiefs have welcomed a multi-million pound boost for health next year, writes Victoria Owen.

Oxfordshire Health Authority will be given 395m to spend from next April, a 32m rise from last year's county budget.

The 8.79 per cent rise is in excess of the national 8.5 per cent increase across England.

OHA finance director Anna Anderson said: "The award is about 2m more than we estimated and is the highest increase in the south east region.

"The money will help us deliver the targets set out in the National Plan, which include improving access for patients and boosting quality of service."

The health authority will also get a chance to share in a 100m performance bonus scheme, which will rise to 500m in 2003.

If county health chiefs hit Department of Health targets, including reducing waiting lists and improving coronary and cancer care, they are likely to get 1m extra to spend on new equipment or more staff.

Oxfordshire forfeited a similar bonus of 653,000 recently because it failed to meet this year's standards - and Mrs Anderson said next year could also be tough.

She said: "Next year will still be challenging as there are high expectations in the NHS Plan, but we have started working with Primary Care Groups and trusts to look at priorities for investment.

"These will include reducing waiting times, continuing the fight against cancer and heart disease and investing in cardiac surgery."

Announced on Tuesday by Health Secretary Alan Milburn, the money is part of a 37bn handout to the 99 health authorities around the UK.

The cash includes nearly 2m to pay nurses a cost-of-living allowance of between 400 and 600 a year.