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NHS Finance

Volume 447: debated on Thursday 8 June 2006

To ask the Secretary of State for Health if she will make a statement on NHS funding in Wirral. (71701)

The Department allocates funding to primary care trusts (PCTs) on the basis of the relative needs of their populations. The 2006-07 and 2007-08 revenue allocations represent £135 billion investment in the national health service, £64 billion to PCTs in 2006-07 and £70 billion in 2007-08. Over the two years covered by this allocation, PCTs will receive an average increase of 19.5 per cent. The table shows allocations for Bebington and West Wirral PCT and Birkenhead and Wallasey PCT.

2006-07 allocation2007-08 allocationTwo year increase

PCT

(£000)

(£000)

£000

Percentage

Bebington and West Wirral PCT

138,522

149,618

21,738

17

Birkenhead and Wallasey PCT

321,016

350,999

57,453

20

The Department does not allocate funding to NHS trusts. NHS trusts, as providers of services, receive the bulk of their revenue funding from commissioning by PCTs. They also receive revenue funding from the Department for medical staff education services and for research and development. In addition, trusts can charge staff, visitors or patients for services provided, such as catering or provision of private patient facilities.

To ask the Secretary of State for Health pursuant to the Statement of 12 April, whether she expects that (a) turnaround organisations and (b) all primary care trusts and NHS trusts which are overspending (i) will show improvement during 2006-07 and (ii) by the end of the year should have monthly income covering monthly expenditure. (76049)

The aim is for the national health service as a whole to return to net financial balance by the end of 2006-07.

We are aiming for all NHS organisations with deficits to have monthly balance of income over expenditure by April 2007. There will be some exceptional cases where an organisation needs longer to make the necessary changes, while still maintaining patient care. However, because over-spending by one organisation has to be balanced by under-spending elsewhere, we will continue to challenge and expect organisations to return to monthly balance as quickly as possible.