§ Mr. Michael Forsythasked the Secretary of State for Social Services if he will take steps to introduce current cost accounting in the Health Service.
§ Mr. Kenneth ClarkeWe have no plans to do so at present. The standard accounting practices now followed in the National Health Service were drawn up in 1982 by a working group of the Association of Health Service Treasurers. The standards proposed by the working group were based on the statement of standard accounting practice issued by the professional accountancy bodies, so far as they were judged to be relevant and practicable. In commenting on SSAP 16, which is the standard for current cost accounting, the working group stated in its report that
The NHS records capital expenditure separately, but does not record depreciation in revenue accounts. Accordingly this standard has no application to the accounts of the NHS.Before the case for current cost accounting can be considered again it will be necessary to have established a method of accounting for the use of capital in the NHS. The case for this is now being considered by a working part of the AHST on which our Department and the Treasury are also represented. I understand that the Association expects to send the working party's report fairly soon to my right hon. Friend, and we shall then be considering its proposals.