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National Health Service Bill [HL]


National Health Service Bill [HL]
Schedule 4 — NHS trusts established under section 25
Part 2 — Powers and duties

202

 

section 4) unless the NHS trust is approved for the purpose of this paragraph

by the Secretary of State.

      (3)  

Such approval—

(a)   

must be for a period specified in the approval,

(b)   

may be given subject to conditions, and

5

(c)   

may be amended or revoked at any time.

Research

16         

An NHS trust may undertake and commission research and make available

staff and provide facilities for research by other persons.

Training

10

17         

An NHS trust may—

(a)   

provide training for persons employed or likely to be employed by

the NHS trust or otherwise in the provision of services under this

Act, and

(b)   

make facilities and staff available in connection with training by a

15

university or any other body providing training in connection with

the health service.

Joint exercise of functions

18         

An NHS trust may enter into arrangements for the carrying out, on such

terms as the NHS trust considers appropriate, of any of its functions jointly

20

with any Strategic Health Authority, Primary Care Trust, Special Health

Authority, Local Health Board or other NHS trust, or any other body or

individual.

Payment for accommodation or services

19    (1)  

According to the nature of its functions, an NHS trust may make

25

accommodation or services available for patients who give undertakings (or

for whom undertakings are given) to pay any charges imposed by the NHS

trust in respect of the accommodation or services.

      (2)  

An NHS trust may exercise the power conferred by sub-paragraph (1)

only—

30

(a)   

to the extent that its exercise does not to any significant extent

interfere with the performance by the NHS trust of its functions or of

its obligations under NHS contracts, and

(b)   

in circumstances specified in directions under section 8, with the

Secretary of State’s consent.

35

Additional income

20    (1)  

For the purpose of making additional income available in order better to

perform its functions, an NHS trust has the powers specified in section 7(2)

of the Health and Medicines Act 1988 (c. 49) (extension of powers of

Secretary of State for financing the health service).

40

      (2)  

The power conferred by sub-paragraph (1) may be exercised only—

 

 

National Health Service Bill [HL]
Schedule 4 — NHS trusts established under section 25
Part 2 — Powers and duties

203

 

(a)   

to the extent that its exercise does not to any significant extent

interfere with the performance by the NHS trust of its functions or of

its obligations under NHS contracts, and

(b)   

in circumstances specified in directions under section 8, with the

consent of the Secretary of State.

5

Provision of accommodation and services outside England and Wales

21         

An NHS Trust may arrange for the provision of accommodation and

services outside England and Wales.

Conferral of further powers by order

22         

The Secretary of State may by order confer specific powers on NHS trusts,

10

further to those provided for by paragraphs 15 to 21.

Powers of NHS trusts to enter into externally financed development agreements

23    (1)  

The powers of an NHS trust include power to enter into externally financed

development agreements.

      (2)  

For the purposes of this paragraph, an agreement is an externally financed

15

development agreement if it is certified as such in writing by the Secretary

of State.

      (3)  

The Secretary of State may give a certificate under this paragraph if—

(a)   

in his opinion the purpose or main purpose of the agreement is the

provision of facilities or services in connection with the discharge by

20

the NHS trust of any of its functions, and

(b)   

a person proposes to make a loan to, or provide any other form of

finance for, another party in connection with the agreement.

      (4)  

If an NHS trust enters into an externally financed development agreement it

may also, in connection with that agreement, enter into an agreement with a

25

person who falls within sub-paragraph (3)(b) in relation to the externally

financed development agreement.

      (5)  

“Another party” means any party to the agreement other than the NHS trust.

      (6)  

The fact that an agreement made by an NHS trust has not been certified

under this paragraph does not affect its validity.

30

Agreements under section 92 or 107

24         

An NHS trust may provide services under an agreement made under section

92 (primary medical services) or section 107 (primary dental services) and

may do so as a member of a qualifying body (within the meaning given by

section 93 or section 108).

35

Staff

25    (1)  

An NHS trust may employ such staff as it considers appropriate.

      (2)  

An NHS trust may—

(a)   

pay its staff such remuneration and allowances, and

(b)   

employ them on such other terms and conditions,

40

 

 

National Health Service Bill [HL]
Schedule 4 — NHS trusts established under section 25
Part 3 — Dissolution

204

 

           

as it considers appropriate.

      (3)  

An NHS trust must—

(a)   

in exercising its powers under sub-paragraph (2), and

(b)   

otherwise in connection with the employment of its staff,

           

act in accordance with regulations and any directions given by the Secretary

5

of State.

      (4)  

Before making any regulations under sub-paragraph (3), the Secretary of

State must consult such bodies as he may recognise as representing persons

who, in his opinion, are likely to be affected by the regulations.

Pensions, etc.

10

26    (1)  

An NHS trust may, for or in respect of such of its employees as it may

determine, make arrangements for providing pensions, allowances or

gratuities.

      (2)  

Such arrangements may include the establishment and administration, by

the NHS trust or otherwise, of one or more pension schemes.

15

      (3)  

The reference in sub-paragraph (1) to pensions, allowances or gratuities to

or in respect of employees of an NHS trust includes a reference to pensions,

allowances or gratuities by way of compensation to or in respect of any of

the NHS trust’s employees who suffer loss of office or employment or loss

or diminution of emoluments.

20

      (4)  

This paragraph does not affect the generality of paragraphs 14 and 25.

Compulsory acquisition

27    (1)  

An NHS trust may be authorised to purchase land compulsorily for the

purposes of its functions by means of an order made by the NHS trust and

confirmed by the Secretary of State.

25

      (2)  

Subject to sub-paragraph (3), the Acquisition of Land Act 1981 (c. 67) applies

to the compulsory purchase of land under this paragraph.

      (3)  

No order may be made by an NHS trust under Part 2 of the Acquisition of

Land Act 1981 with respect to any land unless the proposal to acquire the

land compulsorily—

30

(a)   

has been submitted to the Secretary of State in such form and

together with such information as he may require, and

(b)   

has been approved by him.

Part 3

Dissolution

35

28    (1)  

The Secretary of State may by order dissolve an NHS trust.

      (2)  

An order under this paragraph may be made—

(a)   

on the application of the NHS trust concerned, or

(b)   

if the Secretary of State considers it appropriate in the interests of the

health service.

40

 

 

National Health Service Bill [HL]
Schedule 4 — NHS trusts established under section 25
Part 4 — Miscellaneous

205

 

      (3)  

Except where it appears to the Secretary of State necessary to make an order

under this paragraph as a matter of urgency, no such order may be made

until after the completion of such consultation as may be prescribed.

29    (1)  

If an NHS trust is dissolved under paragraph 28, the Secretary of State may

by order transfer, or provide for the transfer, to himself or an NHS body of

5

such of the property and liabilities of the NHS trust which is dissolved as in

his opinion is appropriate; and any such order may include provisions

corresponding to those of paragraph 9.

      (2)  

The liabilities which may be transferred by virtue of sub-paragraph (1) to an

NHS body include criminal liabilities.

10

      (3)  

An order under this paragraph may make provision in connection with the

transfer of staff employed by or for the purposes of the NHS trust which is

dissolved; and such an order may include provisions corresponding to those

of paragraph 8, including provision for the making of a scheme by such

Strategic Health Authority, Special Health Authority, Local Health Board or

15

other body as may be specified in the order.

      (4)  

No order may be made under this paragraph until after completion of such

consultation as may be prescribed.

30    (1)  

If an NHS trust is dissolved under paragraph 28, the Secretary of State or

such other NHS trust, Strategic Health Authority, Primary Care Trust,

20

Special Health Authority or Local Health Board as he may direct must

undertake the responsibility for the continued payment of any such pension,

allowances or gratuities as, by virtue of paragraph 11(2) or paragraph 26,

would otherwise have been the responsibility of the NHS trust which has

been dissolved.

25

      (2)  

Sub-paragraph (1) does not affect the generality of paragraph 29.

31         

An NHS trust may not be dissolved or wound up except in accordance with

paragraph 28 or section 57.

Part 4

Miscellaneous

30

Use and development of consecrated land and burial grounds

32         

Section 128 of the Town and Country Planning Act 1971 (c. 78) (use and

development of consecrated land and burial grounds) applies to consecrated

land and land comprised in a burial ground, within the meaning of that

section, which an NHS trust holds for any of its purposes as if—

35

(a)   

that land had been acquired by the NHS trust as mentioned in

subsection (1) of that section, and

(b)   

the NHS trust were a statutory undertaker, within the meaning of

that Act.

Instruments etc.

40

33    (1)  

The fixing of the seal of an NHS trust must be authenticated by the

signature—

(a)   

of the chairman or of some other person authorised (whether

generally or specifically) by the NHS trust for that purpose, and

 

 

National Health Service Bill [HL]
Schedule 5 — Financial provision about NHS trusts established under section 25

206

 

(b)   

of one other director.

      (2)  

A document purporting to be duly executed under the seal of an NHS trust

must be received in evidence and must, unless the contrary is proved, be

taken to be so executed.

      (3)  

A document purporting to be signed on behalf of an NHS trust must be

5

received in evidence and must, unless the contrary is proved, be taken to be

so signed.

Interpretation

34         

In this Schedule—

“provide” includes manage,

10

“operational date” has the meaning given by paragraph 5(5).

Schedule 5

Section 27

 

Financial provision about NHS trusts established under section 25

Originating capital of NHS trusts

1     (1)  

Each NHS trust has an originating capital of an amount specified in an order

15

made by the Secretary of State.

      (2)  

The originating capital of an NHS trust is an amount representing the excess

of the valuation of its assets over the amounts of its liabilities.

      (3)  

In determining the originating capital of an NHS trust, there must be left out

of account such assets or liabilities as are, or are of a class, determined for the

20

purposes of this paragraph by the Secretary of State with the consent of the

Treasury.

      (4)  

An NHS trust’s originating capital is deemed to have been issued out of

moneys provided by Parliament and is an asset of the Consolidated Fund.

      (5)  

An NHS trust’s originating capital is public dividend capital.

25

      (6)  

With the consent of the Treasury, the Secretary of State may determine—

(a)   

the dividend which is payable at any time on any public dividend

capital issued, or treated as issued, to an NHS trust under this Act,

(b)   

the amount of any such public dividend capital which must be

repaid at any time,

30

(c)   

any other terms on which any public dividend capital is so issued, or

treated as issued.

      (7)  

An order under sub-paragraph (1) may be made only with the consent of the

Treasury.

      (8)  

In this paragraph—

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“assets” means the assets which, on or in connection with the

establishment of the NHS trust, are or will be transferred to it

(whether before, on or after its operational date), and

“liabilities” means the liabilities which are or will be so transferred.

 

 

National Health Service Bill [HL]
Schedule 5 — Financial provision about NHS trusts established under section 25

207

 

Financial obligations of NHS trusts

2     (1)  

Each NHS trust must ensure that its revenue is not less than sufficient,

taking one financial year with another, to meet outgoings properly

chargeable to revenue account.

      (2)  

Each NHS trust must achieve such financial objectives as may from time to

5

time be set by the Secretary of State with the consent of the Treasury and as

are applicable to it.

      (3)  

Any such objectives may be made applicable to NHS trusts generally, or to

a particular NHS trust or to NHS trusts of a particular description.

Borrowing

10

3     (1)  

For the purpose of its functions an NHS trust may borrow (both temporarily,

by way of overdraft, and longer term) from the Secretary of State or from any

other person.

      (2)  

Sub-paragraph (1) is subject to any direction given by the Secretary of State

under section 8, to the provisions of this paragraph and to any limit imposed

15

under this Schedule.

      (3)  

An NHS trust may not mortgage or charge any of its assets or in any other

way use any of its assets as security for a loan.

      (4)  

The Secretary of State must determine the terms of any loan made by him to

an NHS trust (including terms as to the payment of interest, if any).

20

Guarantees of borrowing

4     (1)  

The Secretary of State may guarantee, in such manner and on such

conditions as, with the approval of the Treasury, he considers appropriate,

the repayments of the principal of, and the payment of interest on, any sums

which an NHS trust borrows from a person other than the Secretary of State.

25

      (2)  

Immediately after a guarantee is given under this paragraph, the Secretary

of State must lay a statement of the guarantee before each House of

Parliament.

      (3)  

Where any sum is issued for fulfilling a guarantee so given, the Secretary of

State must lay before each House of Parliament a statement relating to that

30

sum as soon as possible after the end of each financial year beginning with

that in which the sum is issued and ending with that in which all liability in

respect of the principal of the sum and in respect of interest on it is finally

discharged.

      (4)  

If any sums are issued in fulfilment of a guarantee given under this

35

paragraph, the NHS trust concerned must make to the Secretary of State, at

such times and in such manner as the Secretary of State may from time to

time direct—

(a)   

payments of such amounts as the Secretary of State with the consent

of the Treasury so directs in or towards repayment of the sums so

40

issued, and

(b)   

payments of interest, at such rates as the Secretary of State with the

consent of the Treasury so directs, on what is outstanding for the

time being in respect of sums so issued.

 

 

National Health Service Bill [HL]
Schedule 6 — Special Health Authorities established under section 28

208

 

Limits on indebtedness

5          

The aggregate of all sums borrowed by NHS trusts which are required to

provide or manage services at or from hospitals or other establishments or

facilities which are situated in England must not exceed £5,000 million or

such other sum not exceeding £10,000 million as may be specified by order

5

made by the Secretary of State with the consent of the Treasury.

Additional public dividend capital

6          

The Secretary of State may, with the consent of the Treasury, instead of

making a loan to an NHS trust under paragraph 3, pay an amount to the

NHS trust as public dividend capital.

10

Supplementary payments

7     (1)  

The Secretary of State may make a payment to an NHS trust.

      (2)  

The payment may be subject to such conditions as he considers appropriate,

including conditions as to repayment.

Surplus funds

15

8          

If it appears to the Secretary of State that any sum held by an NHS trust

otherwise than as trustee is surplus to its foreseeable requirements, the trust

must, if the Secretary of State with the approval of the Treasury and after

consultation with the trust so directs, pay that sum into the Consolidated

Fund.

20

Investment

9     (1)  

An NHS trust has power to invest money held by it in any investments,

including investments which do not produce income, specified in directions

under section 8.

      (2)  

Sub-paragraph (1) does not apply in relation to money held by an NHS trust

25

as trustee.

10         

Any direction under section 8 with respect to—

(a)   

the power conferred on an NHS trust by paragraph 3, or

(b)   

the maximum amount which an NHS trust may invest in any

investments or class of investments,

30

           

may be given only with the consent of the Treasury.

Schedule 6

Section 28

 

Special Health Authorities established under section 28

Corporate status

1          

Each Special Health Authority is a body corporate.

35

 

 

 
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