HC Deb 29 June 1994 vol 245 c583W
Dr. Lynne Jones

To ask the Secretary of State for Health what assessment she has made of the effects of capital financing charges on the ability of health care providers to invest in new hospital buildings.

Mr. Sackville

The purpose of the capital charging system is to increase the awareness of health service managers of the cost of capital, to ensure that proposals for capital investment make best use of the resources available and to encourage both health care providers and purchasers to be innovative in planning health care delivery by considering alternatives to capital investment where appropriate. This has led to some providers reconsidering plans for new hospital buildings. There is no evidence that necessary capital investment is being constrained by the capital charging system.