Written question asked by Steve Webb (Liberal Democrat) on Friday, 6 January 2006, in the House of Commons. It was due for an answer on Tuesday, 10 January 2006. It was answered by Liam Byrne (Labour) on Monday, 23 January 2006 on behalf of the Department of Health.

NHS Trusts (Finance)

Question: To ask the Secretary of State for Health over what time period an NHS trust which runs up a deficit during the 2005–06 financial year is required to repay the amount overspent; and if she will make a statement.

Answer: National health service trusts are expected to plan for and achieve break even every year. NHS trusts have a statutory financial duty to achieve a break even position on income and expenditure taking one year with another. This is interpreted as needing to break even over a period of three, and in exceptional cases, up to five years. Where NHS trusts overspend, this would require other NHS organisations, within the health economy, to under spend over the same period.

Secondary information