The Chancellor Gordon Brown yesterday defended his Budget after further savage cost-cutting emerged in NHS hospitals.
He said health trusts would receive an extra £6 billion in the next financial year and a further £6 billion the year after that.
He said the health service was mentioned in Wednesday's Commons Budget state-ment, but the extra money had been announced earlier.
He said: "Most organisations in the NHS are getting more money next year and more money the year after."
The Chancellor said efficiency was important so that new, but often expensive, treatments, for example for breast cancer and heart dis-ease, could be brought in.
He said: "We want the NHS to bring in the most modern treatments as soon as possible so we have got have the most efficient use of resources."
The Chancellor's comments came after further evidence of the cash crisis facing the health service emerged.
Staff at The Royal Free Hospital, in Hampstead, north London, were facing the loss of about 480 posts under plans to save £25 million.
Meanwhile, 190 jobs may be axed at Queen Mary's Hospital in Sidcup, Kent, in an attempt to reduce a predicted £13 million deficit.
Up to 700 posts may also be cut over the next three years at the County Durham and Darlington Acute Hospitals NHS Trust and East Kent Hospitals Trust has warned jobs may be axed in an attempt to reduce a predicted £35 million deficit.
Some 2,000 job cuts have now been announced at hospitals across the UK in the past week .
The Department of Health said the job cuts reflected the need to treat patients more efficiently and improve organisation.
Tory leader David Cameron lambasted Gordon Brown as a "roadblock to reform" as he claimed hospital job cuts were a "direct result" of the Chancellor's failure to reform the National Health Service.
The Conservative leader, who briefly appeared at Wolverhampton New Cross Hospital where staff jobs are under threat, said Mr Brown's Budget had only "underlined" this failure.
Mr Cameron, who visited a number of places around the Midlands, said: "Right across the country there are cuts taking place in the NHS. Here in Wolverhampton 300 jobs are at risk. These cuts are a direct result of Gordon Brown's failure to reform the health service."
As well as going to New Cross, Mr Cameron also visited the Network Worcestershire recycling centre at Kidderminster and the Pump House Environment Centre in Worcester.