Health Authorities (Resources) (Hansard, 31 January 1996)

§ Mr. Hague

I announced on 13 December that I had decided to provide an additional £84 million for the NHS in Wales for 1996–97. This brings total NHS spending to £2,274 million. Within this sum, I propose to allocate £1,587 million to hospital, community and the cash-limited element of the family health services. Subject to approval of the relevant supply estimate, this amount will be distributed as follows:

The new health authorities will receive £1,491.6 million for revenue purposes. This is an increase of £55 million or 3.85 per cent. over 1995–96 plans, and 1.1 per cent. in real terms. In addition, authorities and trusts will be expected to generate efficiency savings of at least 3 per cent. This amounts to £40 million including a further £3.25 million savings in managements costs. These savings, together with the £55 million cash increase, will be available to meet inflationary and other pressures and enable further investment to be made in patient care.

Health authorities and NHS trusts will also receive £95.8 million for capital investment. They are also expected to receive additional receipts from sales of surplus land. These additional resources will be available for reinvestment in capital development. In additional to 815W public sector capital spending, I expect the NHS in Wales to benefit significantly next year from private sector capital investment under the private finance initiative.

I want the NHS in Wales to see PFI as the main source of funding for capital investment. It offers a unique opportunity to bring forward capital projects which are additional to existing public expenditure plans.

Details of the planned allocations to the new health authorities, which come into being on 1 April 1996 and the provisional external financing limits for NHS trusts is contained in a statement which has been placed in the Library of the House.