§ Mr. Simon HughesTo ask the Secretary of State for Health (1) if the requirement for NHS trusts and health authorities to eliminate, by 31 March 1999, their aggregate net deficits brought forward at 31 March 1998, has the overall effect of eliminating the 2.2 per cent. real increase in spending planned for the English NHS as between 1997–98 and 1998–99; [46270]
(2) if the English NHS trusts and health authorities are required, by 31 March 1999, to eliminate their aggregate net deficits brought forward at 31 March 1998. [46268]
§ Mr. Milburn[holding answer 16 June 1998]: Health authorities and National Health Service trusts are expected to balance income and expenditure within the financial year. Not all reported in-year deficits are indicative of underlying financial problems. Some are described as "technical" and may be caused by the application of Generally Accepted Accounting Practice.
Aggregate deficits are the sum of in-year deficits. Many of these will be caused by the summation of technical in-year deficits, or, in the case of health authorities, inherited on their formation from former district health authorities and family health services authorities.
610WHealth authorities and NHS trusts are not expected to eliminate their aggregate net deficits where these are technical and/or inherited from former health bodies. The real increase in planned spending between 1997–98 and 1998–99 will not be materially affected by the current level of aggregate net deficits.
§ Mr. Simon HughesTo ask the Secretary of State for Health what was the aggregate net deficit of English NHS trusts and health authorities carried forward at 31 March 1997; and what further net deficits were incurred in the year to 31 March 1998. [46269]
§ Mr. Milburn[holding answer 16 June 1998]: The aggregate net deficit of English National Health Service trusts and health authorities carried forward at 31 March 1997, as reported in their 1996/97 audited accounts, was £484 million.
Information from the 1997/98 financial year is not yet available.