In March 2005, the King's Fund published An Independent Audit of the NHS under Labour (1997-2005), which included an analysis of where extra NHS funding had been spent. This briefing provides an update to the question "where's the money going?" It analyses new data recently released by the Department of Health and reveals how much money is absorbed by higher pay and other cost pressures and how much is left over for other developments such as reducing waiting times and other government priorities. [Introduction]