2. GENERAL EXPENDITURE ISSUES
2.1 NHS Financial balance
2.1.1 Based on current forecasts, what will
be the likely financial performance of the NHS in 2003-04 in terms
of financial balance, "deficit" organisations and performance.
[2.1.1]
2.2 Overall expenditure
2.2.1 Could the Department provide an updated
version of Table 2.1.1, and of the Department's commentary which
accompanied it? Could it also show this data in graphical form?
Could the Department provide a brief commentary, explaining what
expenditure is included under each section of the table? Can the
footnote to table 2.1.1 explain the measures and their applications
for lines D to G? [2.2.1]
2.2.2 What is the Department's assessment
of each programme's performance in 2001-02 against plans for that
year, and anticipated performance in 2002-03 against plans for
that year and outturn in 2001-02? [2.2.3]
2.2.3 Could the Department provide a breakdown
of what the additional NHS expenditure in 2002-03 as compared
with 2001-02 has been spent on? The impacts on expenditure of
additional staff, increased pay levels, medicines, capital and
other expenditures should be distinguished where possible. [2.2.6]
2.2.4 Could the Department provide information
on net NHS expenditure in England on a consistent basis, including
taking into account the switch to resource accounting, from 1970
to the latest plans?
2.2.5 Could the Department provide information
on NHS income from charges over the last 10 years by type of charge?
2.2.6 Could the Department provide comparative
information about total NHS spending in England in relation to
total NHS spending in Wales and total NHS spending in Scotland?
2.3 Programme Budgets
2.3.1 Could the Department update the information
on expenditure on Programme Budgets provided in Tables 2.3.1?
[2.3.1]
2.4 Expenditure on Community Care
2.4.1 Could the Department provide a table
showing, by service, net expenditure in real terms by central
and local government on community care, broken down by residential
and non-residential care (taking into account relevant service
pay and price increases), over the most recent five year period
for which such data are available? Could this data include Social
Security and Housing expenditures contributing to Community Care
objectives? Could it also show this data in graphical form? [2.5.1]
2. GENERAL EXPENDITURE
ISSUES
2.1 NHS Financial balance
2.1.1 Based on current forecasts, what will
be the likely financial performance of the NHS in 2003-04 in terms
of financial balance, "deficit" organisations and performance.
[2.1.1]
FINANCIAL POSITION
2003-04 AND DEFICIT
ORGANISATIONS
1. All NHS organisations plan to achieve
financial balance or better in 2003-04, ie no deficit organisations
are planned.
2. To help achieve this position the NHS
Bank is providing £152 million of support to those organisations
with the most serious financial issues. The DH has also postponed
the repayment of £90 million due from Avon, Gloucester and
Wiltshire.
3. There are a small number of health bodies
managing difficult financial positions, which may require longer-term
financial recovery plans. In these cases the PCT or NHS Trust
concerned will be working closely with their Strategic Health
Authority to develop and implement appropriate strategies to manage
the financial pressures (within available resources).
4. Whilst recovery plans are expected to
achieve underlying financial balance over the shortest possible
period—this should not be at the expense of patient care/services.
PAYMENT PERFORMANCE
5. All PCTs and NHS Trusts should meet the
Better Payment Practice Code (BPPC) target of paying 95% of non-NHS
trade creditor bills within contract terms or 30 days where no
terms have been agreed.
6. The latest projection for financial year
2002-03 indicates that NHS organisations are paying 82% of bills
within 30 days/within the BPPC target. This is a significant improvement
on 1996-97 when NHS organisations paid 77% of bills within the
target. However, the performance in 2002-03 is slightly worse
than 2001-02 when NHS organisations paid 84% of bills within the
target.
7. The DH will continue to work with SHAs
to ensure all NHS bodies achieve and maintain a level of payment
performance consistent with Government Accounting Regulations
and Better Payment Practice Code.
| 
