Written question asked by Earl Howe (Conservative), in the House of Lords. It was answered by Lord Warner (Labour) on Tuesday, 20 December 2005.

NHS: Local Improvement Finance Trust

Question: What is their response to the conclusions contained in the report by the think tank Reform that (a) the local improvement finance trust model should be expanded into secondary as well as primary care; and (b) the model provides for greater local choice and flexibility than private finance initiative schemes.

Answer: It is currently possible for some secondary care schemes to be taken forward by a local improvement finance trust (LIFT) company. However, it is for local health economies to determine their best procurement option for delivering new health care facilities. Their options could include LIFT, the private finance initiative or public capital with consideration given to achieving an optimum level of risk transfer and appropriate payment and performance mechanisms to deliver a value for money project.

Secondary information