The NHS Bank is funded from a central allocation from the Department of Health. The contributions received and repayments made by strategic health authority (SHA) in each year since 2002 are set out as follows:
£ million Avon Gloucester and Wiltshire Surrey and Sussex Bedfordshire and Hertfordshire Thames Valley Kent and Medway Total 2002-03 45 30 25 — — 100 2003-04 70 40 — 25 17 152 2004-05 40 20 — 10 — 70 2005-06 20 — — — (8) 12 2006-07 — (7) — (5) — (12) 175 83 25 30 9 322
In addition to the distribution of special assistance funding, the NHS Bank also managed the brokerage of cash and capital resources between SHAs, from its inception in 2003 until 2005-06. The NHS Bank provided funding to SHAs only. The Bank does not provide repayable loans to PCTs and NHS trusts. The distribution of funding to individual organisations is the responsibility of the relevant SHA.
Any cash contributed from, or received by, an SHA under these arrangements was returnable in full in the following financial year. In addition, a one-off cash rebasing was carried out in 2003-04 that was not returnable the following year. The following table summarise all brokerage and cash rebasing that was managed through the NHS Bank.
£ million Brokerage received Brokerage issued Net position 2003-04 New brokerage 170 483 313 Cash Rebasing — 212 212 2004-05 Prior yr reversal 483 170 313 New brokerage 410 317 93 2005-06 Prior yr reversal 317 410 93 New brokerage 372 660 288 660 372 288
From 2006-07, cash support to NHS trusts will be provided by interest bearing loans and deposits issued by the Department.