Hospitals: Construction

Department of Health written question – answered at on 13 September 2017.

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Photo of Thelma Walker Thelma Walker Labour, Colne Valley

To ask the Secretary of State for Health, what his policy is on the use of private financial investment companies to fund the building of new hospitals.

Photo of Philip Dunne Philip Dunne The Minister of State, Department of Health

It is for individual National Health Service trusts and foundation trusts to make decisions in consultation with local stakeholders (e.g. clinical commissioning groups) about their facilities and accordingly they are responsible for developing their own business cases for major new investment projects. They are required to do so with regard to value for money and affordability of the different options. The Department and NHS Improvement works closely with trusts going through this process. HM Treasury are responsible for the policy on the use of Private Finance 2 (PF2), the successor to the Private Finance Initiative, introduced under the Coalition Government in 2012. This introduced changes to the previous model.

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