NHS Property debt rising

An NAO report said that outstanding debt had reached £576m. In 2018/19 the service recovered only 58.4p for every £1 billed and, although GPs occupy only 18% of its properties, they owe some 30% of the current outstanding debt.

Data quality had improved, and a new billing system was introduced in 2017, but many bills are disputed, particularly by tenants without a rental agreement. The percentage of tenants without leases has increased from two-thirds to 70% since 2013/14.

The service does not have the same rights as commercial landlords, limiting its ability to act against non-payers. 

NAO head Gareth Davies (pictured) said the Department must address the situation urgently. ‘Too many NHS organisations and GPs seem to regard paying for their premises as optional, with almost £700m written off or still unpaid.’

NHS Property Services chair Ian Ellis said the report highlighted the legacy issues it faced. It was keen to work with the NHS to make improvements, such as developing a joint plan to ensure all tenancy details and charges are agreed by 31 March 2020.