Written question asked by Lord James of Blackheath (Conservative), in the House of Lords. It was answered by Lord Hunt of Kings Heath (Labour) on Monday, 29 January 2007.

NHS: Deficit

Question: Further to the Written Answer by Lord Warner on 8 January (WA 32–3), whether all or any of the two contingencies of £350 million from either 2005–06 or 2006–07 were charged to the closing accounts for the financial year 2005–06.

Answer: The £94 million net deficit reported at quarter two, 2006-07, reflects the financial position of the NHS overall, including the impact of the £350 million contingency established by SHAs through their prudent management of NHS central budget programme funding devolved to them by the department. SHAs have created one contingency through their management of central budgets. This contingency currently stands at £350 million and has been set against the overall financial position of the NHS, though at quarter two, SHAs reported their ability to create an additional £100 million through their continued management of the central budget programme. The contingency is not related to previous financial years, either as a charge to NHS funding or as a charge to the final accounts.

Secondary information

Type: Written question
Reference: 1162; 689 c16-7WA
Session: 2006-07
Related items: NHS: Deficit
Monday, 8 January 2007
Written questions
House of Lords
Subjects: Debts Finance Health authorities NHS
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk