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Clause 11 - Power of Secretary of State to give

Part of Health and Social Care (Community Health and Standards) Bill – in a Public Bill Committee at 11:00 am on 22nd May 2003.

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Photo of Andrew Lansley Andrew Lansley Conservative, South Cambridgeshire 11:00 am, 22nd May 2003

The Minister has moved on to the relationship between the national tariff and the capital of NHS foundation trusts as distinct from non-foundation trusts. I thought that the Committee would deal with that matter later. My understanding is that the intention is to have a single national tariff. If, on the one hand, the tariff for NHS foundation trusts is designed to provide sufficient resources—not only to meet the costs of providing the service in revenue recurrent terms but to repay the capital costs of borrowing to support additional capacity—and, on the other hand, non-foundation trusts had not borrowed but had had their capacity provided by direct departmental capital grants, how does one equalise the national tariff? Will departmental capital grants to non-foundation trusts be capitalised on their balance sheets so that they have to repay the capital charge to the Department in the same way as foundation trusts would have to pay a private lender?