§ Mr. Alan KeenTo ask the Secretary of State for Health what plans he has to review the capital charges regime for new NHS buildings. [130097]
§ Mr. DenhamThere are currently no plans to review the capital charges regime in the National Health Service.
The NHS, in common with the Department and other Government Departments, is required to meet a cost of capital charge. This is currently set by Her Majesty's Treasury at 6 per cent. of the net value of relevant assets employed. New buildings are included in the calculation of net assets, and depreciation (the other component of capital charges) continues to be charged on all operational NHS buildings.
The Valuation Office Agency is carrying out a review of the technique for calculating the value of specialist NHS buildings. Any consequent change in valuation techniques could be expected to impact on the absolute level of capital charges (through adjustments to new and existing building valuations), but not in the operation of the capital charges regime.