Skip to main content

Nhs Management

Volume 264: debated on Tuesday 24 October 1995

The text on this page has been created from Hansard archive content, it may contain typographical errors.

To ask the Secretary of State for Health if he will make a statement on how the figure of £140 million in his press release 95/473 to be transferred from administrative costs to patient care is calculated; what cash amount he intends to release from cuts in administrative costs in (a) NHS trusts, (b) health authorities, (c) GP fundholding practices and (d) other areas; and if these sums will be retained by the trusts, health authorities and general practitioner practices which make the savings, or will revert to the NHS executive or his Department. [38380]

We expect planned spending on running district health authorities and family health services authorities and estimated spending by national health service trusts on managerial and non-clinical administrative staff to be reduced by 5 per cent. nationally in 1996–97 in cash terms. This is equivalent to an 8 per cent. reduction in real terms on the basis of the latest expected gross domestic product deflator for 1996–97 and is estimated to yield savings of some £140 million. I anticipate savings on health authority costs will amount to some £40 million in real terms and savings by trusts to some £100 million. The savings will be retained locally and will be available for patient care.