George Osborne has revealed that he is going to inject a further £2 billion into the NHS, and will set out details in his autumn statement.
This will be Osborne's last autumn statement before the general election and could be his final one as Chancellor.
Osborne says that he was ready to make a commitment to the NHS because out economy is strong and comes after NHS bosses warned that more money was required to cope with the growing pressure on the service.
Speaking on BBC One's Andrew Marr Show, Osborne said: "Because we have a strong economy and we've got the public finances under control, we can afford to put £2 billion into the frontline of the NHS across the United Kingdom.
"I can tell you we can go further and use those fines that have been paid by the banks for a permanent improvement in GP services.
"This is a down-payment on the NHS's own long-term plan and it shows you can have a strong NHS if you have a strong economy."
Who the money will be spent to improve services will be explained further by Mr Osborne during his speech on Wednesday.
While it was not clear where this extra £2 billion is going to come from, Labour has revealed that they would use money from the mansion tax to pour more cash into the NHS.
Labour have put the NHS at the heart of its general election campaign and the Conservatives are hitting back as their rivals have a clear lead on health in the opinion polls.
And this injection of cast comes after it was revealed by NHS chief executive Simon Reeves, that the NHS would need a further £8 billion by 2020.
However, could this 'good news' for the NHS have been leaked ahead of the Wednesday's statement to hide the fact that the Chancellor has failed to stop borrowing rising?
Osborne's plans to balance the books have suffered a major setback after it was revealed that borrowing has gone up over the last twelve months. This means that Osborne will miss his target of cutting the country's deficit by 12% this year.