HC Deb 05 February 1991 vol 185 cc144-5
2. Mr. Teddy Taylor

To ask the Secretary of State for Health what guidance he is giving to regional health authorities about the time scale to be adopted in transferring the funding of districts to the capitation system; and if he will make a statement.

The Secretary of State for Health (Mr. William Waldegrave)

All regional health authorities have submitted details of their proposals for achieving funding based on weighted capitation at district level. We are analysing the method and pace of change proposed by the regions and will be formulating a national policy and timetable shortly.

Mr. Taylor

As authorities such as Southend, which has traditionally been woefully underfunded, were looking forward to the new Government proposals that would give them a fairer deal, is my right hon. Friend aware of the serious concern, first, that there might be an unduly extended time scale for change and, secondly, and more important, that the regional health authorities can adjust the figures as they see fit to make allowances for what they assess as deprivation? Bearing in mind the fact that regional health authorities are not subject to any democratic control, will my right hon. Friend see to it personally that they do not undermine his excellent plans?

Mr. Waldegrave

I am aware of the anxiety in Southend because my hon. Friend has made his concerns clear to us. There are two aspects of the matter. First, it is fair to say that the potential gains for Southend, which will come through in the end, must be set against the disruption to the losers in the process. It is fair to take a little longer so that the disruption is tolerable. Secondly, I can set my hon. Friend's mind at rest that all the formulae produced by the regions will have to come to my Department for approval and I shall ensure that they are fair.

Mr. Ashley

Is the Secretary of State aware that he should not be too tolerant with the regional health authorities? I endorse what was said a moment ago. If the Secretary of State does not insist on the authorities allocating resources on a weighted capitation basis, underprivileged areas such as north Staffordshire will not receive the money to which they are entitled. Will the Secretary of State press them strongly?

Mr. Waldegrave

I can give the right hon. Gentleman the same assurance as I gave earlier. The plans put forward by the regions will be carefully scrutinised in the Department to make sure that they are consistent and sensible.

Mr. Hayes

While warmly welcoming the minimum 10 per cent. cash increase, which should make it a great deal easier to introduce weighted capitation at district level, may I ask my right hon. Friend to take into account poor beleaguered Essex, which year after year has suffered cash shortages in the national health service? Will my right hon. Friend do what he can to support our new regional chairman, who is very able and supportive?

Mr. Waldegrave

I strongly endorse what my hon. Friend said about the regional chairman, who is strengthening management throughout his area. I take my hon. Friend's point. He understands why I have slowed down by, I hope, no more than a year the move to full weighted capitation at the regional level so that there is not too much disruption in the process.