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Dept of Health

Answer

Mr. Simon Hughes: To ask the Secretary of State for Health if he will list the deficits of each (a) health authority and (b) health trust for the first quarter of the financial year 1997-98. [16716] Mr. Milburn: [holding answer 19 November 1997]: The forecast surpluses and deficits for all health authorities and National Health Service trusts for the first quarter of 1997-98 are listed in tables, together with information for the second and third quarters. Copies of the tables have been placed in the Library. As this is fast-track management information which provides a forecast estimate of the position at the end of the year, it is normal for movements to occur during the year. Forecast income and expenditure figures do not always reflect the underlying financial position, and a large income and expenditure deficit does not necessarily indicate financial problems. There are a number of factors which should be taken into account when looking at the underlying financial position, for example: an NHS trust may make a charge to the income and expenditure account for provisions such as estimated clinical negligence liabilities and early retirement costs--even though actual payments are not made at this time. In accordance with Generally Accepted Accounting Practice (GAAP), these provisions are made in respect of future liabilities; and any deficit caused by charging them to the income and expenditure account now is therefore not necessarily indicative of underlying financial problems; a health authority which lent (brokered) cash to another health authority in 1996-97 will be repaid this year. Consistent with GAAP, this repaid cash will not score as income on the health authority's income and expenditure account. Any income and expenditure deficit caused by spending repaid brokerage would not necessarily indicate underlying financial problems; a health authority or NHS trust in receipt of transitional funding may have a balanced position or even an income and expenditure surplus.

Secondary information

Type

Written question

Reference

312 c149-50W; 16716

Session

1997-98

Subjects

Debts Finance Health authorities NHS NHS trusts

Contains statistics

Yes