To ask the Secretary of State for Health what assessment her Department has made of the impact which the NHS funding formula has had on NHS deficits within Surrey; and if she will make a statement. (143281)

The Department’s director general of finance commissioned a report from the chief economic adviser to consider potential causes for the emergence of national health service deficits. The report “Explaining NHS Deficits 2003-04 to 2005-06” was published on 20 February 2007.

The report discusses purported explanations for the timing, geographical patterns and organisational structure of NHS deficits. The report shows that the resource allocation funding formula did not play a significant role in causing aggregate NHS deficits in the years in which this formula was used to allocate funding.

Copies of the report are available in the Library.