Department of Health and Social Care: Treasury Funding

Debate between Robert Halfon and Chris Skidmore

Wednesday 4th September 2019 Commons Chamber

[The Minister for Health (Chris Skidmore)]

I congratulate my right hon. Friend the Member for Harlow (Robert Halfon) on securing this important debate. It is the first debate to which I have been able to respond in my new role. I know that my right hon. Friend campaigns tirelessly on matters of healthcare in Essex and, in particular, on the issue of funding for the Princess Alexandra Hospital NHS Trust. I also know that he met my predecessor to discuss issues, including the hospital’s workforce and the services provided by the trust. This is the fifth debate that he has initiated on this issue, which may be a record in the House of Commons. We in the Department, and my officials who are sitting in the Box tonight, are fully aware of the concerns that he has raised. Let me explain why we continue to take them seriously and want to continue to work with him.

Both my right hon. Friend the Secretary of State for Health and Social Care and my predecessor, my hon. Friend the Member for Wimbledon (Stephen Hammond), have visited the trust over the past few months and seen at first hand the excellent work that is being done by NHS staff despite the challenges faced by the estate, which my right hon. Friend has described. I should be delighted if he welcomed a visit from me so I could see the estate and thank the staff for the excellent work that they have done in improving the hospital. My right hon. Friend described in his eloquent speech the commitment that the staff have given to the hospital, across the board, and I should be delighted to see that at first hand.

As my right hon. Friend knows, the Government have already made significant funding available for health capital investment, recognising that the NHS faces the challenges posed by poor infrastructure and ageing estates. Between 2016-17 and 2018-19, we increased capital funding by £1.3 billion, an increase of about 30%. As my right hon. Friend said, we have also announced a £1 billion funding boost for the NHS, along with 20 new hospital upgrades to help staff to deliver the best possible health services in their buildings. I have had the pleasure of touring some of these potential new upgrades, including in Luton and Dunstable, which is relatively near my right hon. Friend’s patch, with a £99 million project, and Heartlands hospital in Birmingham, Barking, Stoke, Staffordshire and Croydon, to recognise that we do need to see upgrades—not just these 20 upgrades, but future additional upgrades.

My right hon. Friend the Secretary of State for Health and Social Care is committed to ensuring we make future investments in capital for the NHS. He recently set out that we will establish a new health infrastructure plan. This will be brought forward to deliver strategic major hospital rebuilding programmes, providing the necessary health infrastructure across the country. The shape of this will be confirmed in due course. I am not able to give specific details, but it will be similar to the road investment strategy process at the Department for Transport, with further long-term capital funding that we are discussing with our Treasury colleagues.

Delivering capital investment is a complex process and it takes time. I fully understand that my right hon. Friend has been very patient about the Princess Alexandra hospital, but this does need to be done thoroughly and professionally, alongside delivering the everyday healthcare services. There is a necessary process of assurance to ensure that services are transformed for the benefit of patients. This process is led by the trust, and includes a number of business case checkpoints and involves procurement, design, delivery and capability. Funding is provided when the full business case has been approved.

The 20 hospital upgrades announced in August were for hospitals that had just missed out on the sustainable transformation programme bid in December 2018, so were able to be progressed having followed the process.

I take the point raised on population growth. That is important in assessing future bids; they must be based on future patient demand, just as clinical commissioning group allocations are currently adjusted to population to take account of growth and movement. I take the point that the areas outside London in the home counties have increased population and population movement, and we are therefore constantly in a state of catch-up in local healthcare services.

I know that my right hon. Friend has also raised proposals to build a new hospital in Harlow with the Chancellor of the Exchequer; I know that because I saw a picture on his Twitter feed, and I am sure he will have listened closely to proposals to fund a new health campus in Harlow.

On 5 August the Government announced a £1.8 billion increase to NHS capital spending, on top of the additional £3.9 billion announced in the 2017 spring and autumn budgets. Some £1 billion of this increase will ensure existing upgrade programmes can proceed by tackling the most urgent projects, and £850 million of the funding will allow 20 new hospital upgrades. I am sure my right hon. Friend will welcome that Luton and Dunstable near his constituency will benefit from this. However, I know he will be understandably disappointed that the new health campus in Harlow scheme was not included on that list. However, the scheme has the support of the Secretary of State for Health and other Ministers, and I understand that the scheme is well developed. NHS Improvement and NHS England will continue to work with the trust to develop its options to tackle the challenges it faces and secure the best outcomes for patients.

In the wider Essex area, there have been several successful bids in the sustainability and transformation partnership tranche 4, which includes £4.2 million awarded to Luton and Dunstable renal dialysis unit relocation, £7.1 million awarded to the Hertfordshire and west Essex vascular surgery network, £11 million to the West Hertfordshire Hospitals NHS Trust emergency care transformation and in Suffolk and north-east Essex £18 million awarded to the East of England Ambulance Service NHS Trust for infrastructure and capacity transformation.

I am sure that my right hon. Friend will agree that this affirms the Government’s commitment to ensuring the region receives its share of NHS funding. We expect there to be further opportunities to access capital in future years, with the decision on what this looks like to be decided in due course. I am sure the Chancellor of the Exchequer and the Chief Secretary to the Treasury will continue to listen to my right hon. Friend’s appeals on this issue, and I will be happy to make representations on his behalf.

Earlier today, the Chancellor reaffirmed the Government’s commitment to a £33.9 billion cash-terms increase in the NHS budget by 2023-24. This includes a £6.2 billion increase in NHS funding next year. This historic NHS settlement provides the largest cash increase in public services since the second world war. There is not time to go into the specific details of how this will be spent, but I would urge everyone, as part of their bedtime reading, to turn to page 9 of the Blue Book of spending round 2019 to see how some of that money is being spent. I am delighted that it will also include a £250 million funding boost for Health Education England next year, which is equivalent to 3.4% real-terms growth.[Official Report, 5 September 2019, Vol. 664, c. 3MC.] This will allow staff at the Princess Alexandra Hospital, particularly nurses, midwives and allied health professionals, to access a personal training budget of £1,000 for every member of staff of those professions. Staff at the hospital will be able to benefit from some of the announcements that have been made today.

As a former Universities Minister, I pay tribute to my right hon. Friend’s work as Chairman of the Education Committee and to his statement about the importance of research in relation to the campus and the health hub. We recognise that, when it comes to training, there needs to be an holistic approach to funding. Yes, capital is important, but we must ensure that the individuals working in those new buildings feel that they have a place within their local NHS and that they want to stay there and continue to work there. That is why some of the announcements today on education and training are absolutely vital, and I am sure my right hon. Friend shares that commitment. Looking at some of the money that has been announced today, we also see that £250 million is to be invested in ground-breaking new AI technologies to help to solve some of healthcare’s toughest challenges.

When we look at the Princess Alexandra Hospital NHS Trust, we must also look at the Harlow science hub campus programme, which is incredibly exciting. I remember it being announced in the 2016 Budget, when I was the former Chancellor’s Parliamentary Private Secretary. There was enormous excitement, and I would like to commend my right hon. Friend for his tireless campaigning relating to the public health campus, which would not have happened if it was not for him making the case in the first place and going to the former Chancellor and securing the funding. It will be the largest centre of its kind in Europe, providing a new national centre for applied and public health science, as well as the headquarters of Public Health England. I know that this is still on schedule with the demolition work already under way, as is the preparation for the construction work, which starts early next year.

I know that Public Health England and the chief executive of the Princess Alexandra Hospital NHS Trust have been in discussions over the last 12 months about what opportunities can arise as a result of the move to Harlow, and I hope to hear more about this soon. Indeed, I will be delighted to come up to Harlow as part of the visit to the hospital trust and to look at how we can explore developing the wider benefits that the scheme may have.

[Robert Halfon]

I thank my hon. Friend very much for what he has said and for his commitment to visit the Princess Alexandra Hospital. Just to be clear, will he confirm that there will be a capital fund from the Treasury for significant capital funding programmes for significant hospital upgrades and that the Princess Alexandra Hospital is very much on that list?

[Chris Skidmore]

This was announced today as part of the spending round document. Paragraph 2.4 states:

The Department for Health and Social Care will receive a new multi-year capital settlement at the next capital review. This will look to deliver a smarter, more strategic long-term approach to the country’s health infrastructure, with investment focused on local areas where the need is greatest. The plan will include capital to build new hospitals”.

I want to reassure my right hon. Friend that when it comes to the Princess Alexandra Hospital, it is under serious consideration in relation to ensuring that that refurbishment will be able to take place for the future.

Question put and agreed to.