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Government accused over NHS surplus
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21 January 2007
The new NHS operating framework calls on trusts to have a surplus next year at least equivalent to the £1.8bn achieved this year.
The Department of Health insisted it was not being prescriptive about what trusts spent the cash on, but that it was sensible to have a surplus.
The framework said the "surplus delivered in 2007/08 by SHAs and PCTs will be carried forward to 2008/09 (after adjustment for any over/underspend movements from the 2006/07 audited accounts).
"Each strategic health authority area should then plan for a surplus in 2008/09 at least equivalent to that total."
Health Secretary Alan Johnson said earlier this year that the surplus would be ploughed back into patient care.
BMA spokesman Mark Porter said NHS staff had been assured the "pain" of achieving surpluses would result in greater service investment. "Now the operating framework has been published we discover the Government is not delivering on that promise."
A Department of Health spokeswoman told BMA News the surplus - around 2% of the total NHS budget - represented "good financial planning".
"Having delivered this it is prudent to keep it at around this level next year to allow us to respond to in-year pressures whilst being able to commit all the growth money we have received in the comprehensive spending review on new things as opposed to clearing debts."
However, she insisted health authorities were not forbidden from using the cash. "We are saying it's good financial planning for them to keep it," she said.
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