HC Deb 25 January 1990 vol 165 cc850-2W
Mr. Morgan

To ask the Secretary of State for Wales (1) if he will make it his policy to recompense health authorities for the financial year 1990–91 for the underestimation by the Government of the rate of inflation for 1989 as measured by the Government's published retail price index;

(2) what financial assistance he will make available to South Glamorgan health authority to make good its published estimated financial deficit for the year 1990–91;

(3) what proposals he has for recompensing health authorities drawing up their budgets for the next financial year for the underestimation of inflation, both as measured by the retail price index and by the sectoral health service price index in the year just finished.

Mr. Grist

I would refer the hon. Gentleman to the reply given by my right hon. Friend the Secretary of State to the hon. Member for Cardiff, North (Mr. Jones), on 11 January. He will note that the recurrent revenue cash increase for hospital and community health services in Wales is 8.2 per cent. and, in addition, health authorities are expected to realise, as a minimum, a further 1.3 per cent. from new cash-releasing cost improvement and income-generation schemes. This gives an effective increase in resources of at least 9.5 per cent.

The estimated excess cost of inflation to be met by authorities in 1989–90 was 1.72 per cent. The recurrent effect of this leaves an increase of almost 7.8 per cent. available for hospital and community health services in Wales in 1990–91 which represents a real terms increase of nearly 3 per cent. after taking account of the 5 per cent. forecast of general inflation given in the Chancellor's Autumn Statement.

The figures will vary as between authorities in Wales depending on the funding they receive for centrally directed developments and the distribution of equalisation provision in accordance with the latest formula assessment relative to resource requirements. The latter is included in the figures given for initial allocations to authorities in my earlier reply.

Mr. Morgan

To ask the Secretary of State for Wales if he will place copies in the Library of the correspondence between his Department and the South Glamorgan health authority regarding financial recompense in the setting of the authority's 1990–91 budget for the underestimation of the rate of inflation in the current year.

Mr. Grist

Apart from follow-up action to the annual review meeting which is referred to in a separate reply given to the hon. Gentleman today there has been no correspondence between the Department and South Glamorgan health authority regarding the funding of the excess costs of 1989–90 inflation.

Mr. Morgan

To ask the Secretary of State for Wales if he will place copies in the Library of the minutes of meetings between his Department and Welsh health authorities regarding financial recompense in the setting of the authorities 1990–91 budgets for the underestimation of the rate of inflation in the current year.

Mr. Grist

I presume the hon. Gentleman is referring to the annual review meetings between the Department and Welsh health authorities which were held during the autumn and which included discussion of authorities' 1989–90 financial positions. By mutual agreement these meetings were not minuted, but points of action arising are

Average daily available beds
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
Acute:
Clwyd 1,420.5 1,434.4 1,391.1 1,400.8 1,399.3 1,371.2 1,342.6 1,337.2 1,354.9 1,307.1
East Dyfed 761.8 763.9 740.9 742.2 741.6 708.1 690.1 694.9 692.9 691o1
Gwent 1,517.9 1,541.4 1,548.9 1,535.4 1,515.1 1,478.9 1,466.2 1,388.7 1,388.0 1,382.6
Gwynedd 6862 687.8 681.7 683.6 670.4 685.6 716.5 718.7 705.1 681.7
Mid Glamorgan 1,915.8 1,886.6 1,859.4 1,842.4 1,846.1 1,844.1 1,835.5 1,813.5 1,784.4 1,878o3
Pembrokeshire 245.7 246.5 248.7 254.2 264.1 260.8 261.1 266.6 258.0 266.1
Powys 292.2 240.4 226.8 229.2 241.5 237.4 237.7 221.0 220.3 195.5
South Glamorgan 1,864.9 1,826.3 1,818.4 1,820.3 1,864.1 1,851.4 1,839.3 1,751.0 1,753.7 1,733.1
West Glamorgan 1,428.3 1,447.8 1,455.1 1,440.4 1,450.0 1,398.2 1,421.3 1,448.0 1,339.9 1,3367
Wales 10,133.3 10,075.1 9,971.0 9,948.5 9,992.2 9,835.7 9,810.3 9,639.6 9,557.2 9,472.2
Non-Acute1
Clwyd 1,632.0 1,580.5 1,600.3 1,525.5 1,551.0 1,522.3 1,469.0 1,431.9 1,335.8 1,271.7
East Dyfed 1,336.5 1,300.2 1,273.8 1,057.9 1,127.3 1,092.0 1,079.9 1,063.3 969.9 943.2
Gwent 2,364.7 2,381.9 2,286.9 2,178.1 2,176.3 2,194.6 2,153.2 2,120.1 2,113.1 2,017.2
Gwynedd 883.3 880.5 863.1 845.6 843.3 856.9 894.1 911.2 905.0 906.3
Mid Glamorgan 3,027.6 2,977.8 2,933.5 2,883.7 2,876.9 2,904.8 2,808.7 2,684.9 2,597.2 2,396.3
Pembrokeshire 220.6 220.1 212.0 219.1 211.3 209.3 206.3 206.4 198.1 198.5
Powys 973.3 940.0 933.8 914.9 846.8 849.9 819.5 793.4 779.8 773.3
South Glamorgan 1,718.7 1,688.4 1,702.5 1,702.6 1,703.0 1,691.9 1,707.1 1,709.3 1,644.2 1,627.0
West Glamorgan 1,166.0 1,158.8 1,162.9 1,165.8 1,146.9 1,151.3 1,181.9 1,126.1 1,110.3 1,056.0
Wales 13,322.7 13,128.2 12,968.8 12,492.9 12,482.8 12,472.5 12,319.7 12,046.6 11,653.4 11,189.5
1 Includes geriatrics, younger disabled, obstetrics, GP maternity, mental illness, mental handicap, adolescent psychiatry, mental illness children, psychogeriatric and elderly mentally infirm.

being pursued with individual authorities. Where authorities projected overspending due to higher than expected inflation during the current financial year, they were reminded of the need to maintain budgetary control and requested to provide details of how they planned to restore financial balance.