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Departmental Public Expenditure

Volume 475: debated on Thursday 15 May 2008

To ask the Secretary of State for Health what estimate he has made of the percentage of his Department’s (a) capital budget and (b) revenue budget that has not yet been allocated for (i) 2008-09, (ii) 2009-10 and (iii) 2010-11. (205198)

Over 80 per cent. of national health service revenue funding for 2008-09 was allocated to the NHS in primary care trust (PCT) allocations on 13 December 2007. The remaining funding is centrally controlled either by:

strategic health authorities (funding allocated on 5 February 2008); and

the Department (funding allocated to budget holders at the beginning of this financial year).

Revenue allocations for 2009-10 and 2010-11 have not yet been announced.

The Department has changed the system of NHS capital allocations so that most of the capital funding that is destined for spend by NHS trusts and PCTs is allocated in response to capital plans that are submitted by NHS trusts and PCTs at the start of the year. Plans for 2008-09 will be finalised in May. The 2008-09 plans include indicative figures for 2009-10 and 2010-11 expenditure, which will not be agreed until the start of those years.

Capital resources have also been set aside to cover foundation trusts, which fund their capital expenditure through cash retained from their operating cash-flows and through prudential borrowing.

Over 55 per cent. of 2008-09 capital resources have been set aside to be drawn under the aforementioned arrangements to fund the local capital investment plans of NHS trusts, foundation trusts and PCTs.

The remainder is centrally managed. It comprises central budget funding (e.g. Connecting for Health) and ‘programme capital’. Central budget holders were allocated their budgets on 17 March 2008. ‘Programme capital’ is funding for capital costs incurred locally of delivering centrally determined investment priorities. This funding will be allocated in the first half of the financial year.