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NHS Trusts: Financial Deficits

Volume 455: debated on Wednesday 10 January 2007

To ask the Secretary of State for Health how many trusts in deficit have had their deficit converted to public dividend capital; what the criteria are for converting deficits to public dividend capital; and if she will make a statement. (113579)

A deficit arises when a national health service trust’s revenue expenditure exceeds its revenue income. Public dividend capital (PDC) is the cash allocated to an NHS organisation to fund capital expenditure. It is not technically possible to convert deficits (an income and expenditure concept) to PDC (a cash concept).