HC Deb 14 July 1995 vol 263 cc821-2W
Mr. Trend

To ask the Secretary of State for Health what action he intends to take in response to the decision of the High Court of the result of the case brought by Manchester local medical committee. [35320]

Mr. Malone

A recent decision by the High Court ruled that departmental guidance in relation to cash-limited general medical services allocations to health authorities constituted a binding direction. Such sums could therefore be set only on the reimbursement of certain general practitioner expenses. Manchester family health services authority had misapplied some cash limited GMS allocations by using them to support wider primary care developments. The Department is satisfied that Manchester FHSA acted in good faith in an attempt to improve services to patients and the court found no evidence to dispute this. Her Majesty's Treasury has given approval for any such payments to be made on an extra statutory basis and to be noted as such in FHSA accounts. Guidance will soon be issued to all FHSAs following the court's ruling and a copy will be placed in the Library.