HC Deb 22 December 1981 vol 15 cc858-9
8. Mr. Hal Miller

asked the Secretary of State for Social Services what decisions have been taken on the forward capital spending programmes of the health regions; and if he will make a statement.

Mr. Fowler

Capital allocations for 1982–83 calculated in accordance with the recommendations of the Resource Allocation Working Party will be issued early in the new year. Planning assumptions for later years will be issued to regions when the White Paper reflecting the Government's expenditure plans for these years has been published.

Mr. Miller

Is my right hon. Friend aware that concern is widely felt throughout the West Midlands that the regional health authority has withheld tenders, so that all capital projects are now subject to serious delay? Does he recognise that there is confusion and anger in my constituency that among the projects so delayed is the new district general hospital—the site works for which have already been completed—which means that there is likely to be a serious waste of money apart from delay in the programme?

Mr. Fowler

I know very well my hon. Friend's concern. The West Midlands region, which determines capital programmes and all schemes, has decided to delay projects pending a thorough review of the regional programme. That review includes the Bromsgrove and Redditch district general hospital scheme. I cannot tell my hon. Friend when the review will be completed, but I shall make further investigations on his behalf.

Mr. Dormand

How much importance does the right hon. Gentleman place on the Black report, which, among other things, deals with capital spending programmes? Does he recall that 10 priority areas are recommended in the report, no fewer than four of which are in the Northern region? The House does not expect the Government to implement all of the many recommendations in the report, but why are they not doing something about capital spending programmes and the other recommendations that are made for the 10 special regions?

Mr. Fowler

I understand the hon. Gentleman's concern. However, the Government have increased spending on the National Health Service by 5 per cent. in real terms. Secondly, planned capital expenditure on the hospital programmes in 1981–82 is 13 per cent. higher than spending in 1978–79. Spending is increasing.

Mr. Mike Thomas

Nevertheless, does the right hon. Gentleman accept that as a result of successive Governments' public expenditure cuts and the way in which they have been arranged capital spending is running at a low level within the NHS? Is this not a recipe for future public squalor?

Mr. Fowler

I must point out to the hon. Gentleman, who has left the Labour Party, that the greatest cuts in capital spending took place under the Labour Government. I have no doubt that he voted for those cuts.

Mr. Major

Is my right hon. Friend satisfied with the equity of the RAWP formula and that the 1982–83 capital allocations will be similar to the planning assumptions previously made?

Mr. Fowler

The level of capital expenditure in 1982–83 will be maintained in real terms. We are considering resource allocations and we shall have something to say about them a little later.