National Health Service Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

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—
35
“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.

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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