Primary Health Care: Finance

(asked on 27th November 2023) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what assessment her Department has made of the potential impact of changes in lease capitalisation requirements in April 2022 on the ability of integrated care boards to fund expansions of primary care facilities.


Answered by
Andrea Leadsom Portrait
Andrea Leadsom
Parliamentary Under-Secretary (Department of Health and Social Care)
This question was answered on 14th December 2023

In preparation for the implementation of the International Financial Reporting Standard for lease accounting (IFRS16), NHS England performed an analysis of IFRS16’s effects on the capital departmental expenditure limit (CDEL). National Health Service organisations self-reported their estimated additional CDEL need, and this was aggregated and tested. NHS England was then allocated additional CDEL by HM Treasury to cover the IFRS16 effects. NHS England manages this budget nationally, working with integrated care boards (ICBs), ensuring that local impacts are managed and necessary CDEL provided.

Most general practice premises are directly owned or leased by general practitioners (GPs). There are few instances where ICBs are leasing GP premises and therefore IFRS16 has a minimal impact on the funding of GP premises improvements.

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