To ask the Secretary of State for Health what assessment she has made of the likely impact on services in trusts which have approved budgets which do not take into account interest and other payments on loans. (80923)

In 2006-07, the informal and untransparent system of cash brokerage and planned support that had previously operated across the national health service has been replaced by a formal system of interest-bearing loans and deposits.

NHS trusts that require additional cash will take out interest-bearing loans with the Department that will be disclosed in the balance sheet. This transparent reporting of financial performance will encourage organisations to address financial problems earlier.

Strategic health authorities are responsible for performance-managing both cash management and financial planning and should ensure that interest accruing on loans with the Department is included in the financial plans for 2006-07.