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Department of Health

First, I congratulate the Committee Office scrutiny unit on its good work on advising Members. Today’s is a timely debate, given that a number of trusts face severe financial deficits. The Department of Health spring supplementary estimate includes large sums—more than £500 million of public dividend capital, including more than £195 million year end flexibility—to increase the loan capital to national health service trusts and primary care trusts. Those sums are in addition to the £200 million requested in the winter supplementary estimate for 2005–06. We are therefore discussing a considerable amount of money in addition to the substantial increase in health care expenditure in this country that has been going on for four or five years under the Labour Government. The expected NHS deficits are attracting a great deal of press comment. People coming from another planet would wonder how some of the trusts have incurred such massive overspends given that there have been large increases in health budgets for many years now. In the Opposition day debate last November, my right hon. Friend the Secretary of State said:"““the reason why there are deficits in a minority of trusts is that, in some cases, there has been overspending, sometimes for several years, or poor financial management, or poor organisation of clinical services.””" She continued:"““We are taking the steps needed to reduce the overall deficit this year and to ensure that, at the end of the next financial year, the NHS will again be in balance.””—[Official Report, 15 November 2005; Vol. 439, c. 850.]"