latest health care news

05.10.18

Ministers to write off £150m of NHS debt in new deal

The Scottish Government will write off £150m of debt owed by NHS health boards – including the troubled NHS Tayside, which alone owes £45m and is expecting a £17m deficit this year – as part of a new financial framework drawn up by ministers.

Health secretary Jeane Freeman said the new deal will give the health boards more flexibility to continue delivering good-quality care, adding that they will also be required to set out finance and improvement plans that break even over the next three years.

Over the years, NHS boards have received loans – known as brokerage – from the Scottish Government to fill funding gaps. The health secretary has now announced that these loans will not be recouped in order to give the health boards a “clean slate” from 2019-20.

Freeman said: “Today I am offering NHS boards a new deal. In return for their efforts to deliver the reforms for the future I am facilitating a new three-year financial planning and performance framework for our NHS territorial boards.

“This change will require boards to deliver a breakeven position over a three-year period, rather than annually as is the case currently. In each year boards will have a 1% flexibility on their annual resource budget to allow them scope to marginally under or over spend in that year.

“For this new deal to be successful I believe it needs a new start. So to give all our territorial boards clear ground to move forward on that three-year planning cycle, I will not seek to recover NHS territorial boards’ outstanding brokerage - the expenditure incurred by Territorial Boards over the last five years which has been above their budget.

“I want all boards to be able to focus their attention on delivering the measures set out in the Health and Social Care Delivery Plan and this Financial Framework, and to do so in a safe and appropriate way - making sure they maintain a strong focus on patient care and the delivery of the services to patients that is safe, effective, person-centred – and timely.”

 

Enjoying NHE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

featured articles

View all News

last word

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad, president of the Association of the British Pharmaceutical Industry (ABPI), sits down with National Health Executive as part of our Last Word Q&A series. Would you talk us throu more > more last word articles >

health service focus

View all News

comment

NHS England dementia director prescribes rugby for mental health and dementia patients

23/09/2019NHS England dementia director prescribes rugby for mental health and dementia patients

Reason to celebrate as NHS says watching rugby can be good for your mental ... more >
Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >

interviews

Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

24/10/2019Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

Today, speaking at the Royal College of General Practitioners (RCGP) annual... more >

the scalpel's daily blog

Pre-diabetes: a hidden healthcare problem

26/05/2020Pre-diabetes: a hidden healthcare problem

Dr Russell Muirhead, Clinical Director of Living Well, Taking Control A third of adults in England have pre-diabetes, according to research published in The BMJ. The study ... more >
read more blog posts from 'the scalpel' >

editor's comment

25/09/2017A hotbed of innovation

This edition of NHE comes hot on the heels of this year’s NHS Expo which, once again, proved to be a huge success at Manchester Central. A number of announcements were made during the event, with the health secretary naming the second wave of NHS digital pioneers, or ‘fast followers’, which follow the initial global digital exemplars who were revealed at the same show 12 months earlier.  Jeremy Hunt also stated that by the end of 2018 – the 70th birthday... read more >