"NHS total expenditure [fell] from £102.8bn in 2009-10 to £102.0bn in 2010-11 (in 2010-11 prices, rounded to nearest £0.1bn) – a real terms fall of 0.7 per cent."
Further, the House of Commons Library Standard Note SN/SG/724 (updated September 2011) says that Net NHS Expenditure in 2009-10 (in 2010-11 prices) was £103.2bn and in 2010-11 the expenditure was £102.0bn a real terms decrease of -1.1%.
The House of Commons library standard mote gives tables of NHS funding from when the service was created. Table 2 gives the expenditure on the NHS in England in 2010/11 prices (ie real terms) from 1974/75 to 2014/15. The last five years are the planned expenditure by the current government.The following graph shows the data plotted.
I have published a graph like this before, this new one is updated to show the new figures in the standard note (effectively, the dip seen for 2010-11). I have fitted three lines to this data, one for the Thatcher/Major years, one for Blair/Brown and the final one for the Cameron era. It is very clear that the current government is squeezing the NHS.
In the following graph I have plotted the data from 2006 with the Blair/Brown trend line plotted in blue and the Thatcher/Major trend in red. Clearly Cameron's funding is less than if the Blair/Brown spending had continued at the same rate, but what is striking is how Cameron's spending compares with Thatcher/Major. If the NHS were funded by Conservatives from the 80s we would have real terms increases of about £1bn every year, instead there is flat funding.