§ Sir Wyn RobertsTo ask the Secretary of State for Wales if he has reached a decision concerning the allocation of resources to health authorities in Wales for 1997–98. [16854]
§ Mr. HagueI announced on 12 December 1996,Official Report, columns 405–09, that I shall be providing an additional £94 million for the NHS in Wales in 1997–98. This will bring total spending to £2,368 million; £1,658 million of this will fund the hospital, community and family health service.
Within this amount, the five health authorities, general practitioners and general practitioner fundholders will receive revenue funding of £1,505 million, £52 million or 3.5 per cent. more than in 1996–97 plans. In real terms, this is an overall increase of 1.5 per cent. Within these resources, I have been able to give health authorities £49 million, which represents a 3.5 per cent. cash increase on discretionary purchasing power, and £3 million to cash limited general medical services, which is a 5.6 per cent. cash increase.
I am expecting health authorities and trusts to continue to generate efficiency savings and in 1997–98 these should amount to at least 2.7 per cent. This will release some £40 million which, together with the new money, will be available to meet inflationary and other pressures, and to increase investment in patient care.
Health authorities and trusts will also receive £105 million to fund capital development. Included with this is some £9 million of new provision in order to fund the package of urgently needed capital development that I set out in my budget statement. The rationalisation of services between the Cardiff royal infirmary and the university hospital of Wales, the new link road to the hospital site and work on the new cancer centre in north Wales can now begin next year. These developments complement the capital schemes worth £40 million that are currently subject to the private finance initiative and I fully expect to see some successful outcomes in 1997–98. The private finance initiative offers a unique opportunity to bring forward capital developments which are funded outside public expenditure.
Officials have today informed health authorities and trusts of the provisional allocations to health authorities and trusts' external financing limits. I have placed a copy of the letter in the Library of the House.