News / Capital transfers to continue for three years
The Department of Health plans to continue transferring NHS capital funding to revenue up to and including 2019/20.
In a letter to the Commons Health Committee,
health minister Philip Dunne (right) said the transfers would give the Department flexibility to meet its spending priorities, particularly in support of the Five-year forward view. He defended the policy of moving capital to revenue, insisting that internally generated cash, retained by providers, funds most capital plans. And for the last 10 years the overall level of capital available has been greater than the amount of internally generated capital spent.
The Department was not aware of any capital project that has been cancelled or delayed as a result of capital to revenue switches in 2016/17.
Sent before the election campaign, the letter added that interest-bearing loans and public dividend capital were available from the Department for trusts unable to generate sufficient funds internally and, again, expenditure over the last 10 years has been significantly lower than the budget set.
However, Mr Dunne said the government planned to reduce the level of transfer – eliminating it by the end of 2019/20.
He added that sustainability and transformation partnerships hoping to access new capital – due to be announced in the autumn – must demonstrate they are maximising the generation of their own capital resources through disposal of surplus estate.
In a letter to the Commons Health Committee, health minister Philip Dunne (right) said the transfers would give the Department flexibility to meet its spending priorities, particularly in support of the Five-year forward view. He defended the policy of moving capital to revenue, insisting that internally generated cash, retained by providers, funds most capital plans. And for the last 10 years the overall level of capital available has been greater than the amount of internally generated capital spent.
The Department was not aware of any capital project that has been cancelled or delayed as a result of capital to revenue switches in 2016/17.
Sent before the election campaign, the letter added that interest-bearing loans and public dividend capital were available from the Department for trusts unable to generate sufficient funds internally and, again, expenditure over the last 10 years has been significantly lower than the budget set.
However, Mr Dunne said the government planned to reduce the level of transfer – eliminating it by the end of 2019/20.
He added that sustainability and transformation partnerships hoping to access new capital – due to be announced in the autumn – must demonstrate they are maximising the generation of their own capital resources through disposal of surplus estate.
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