National Health Service Act 1977

[F197 Means of meeting expenditure of Health Authorities and Special Health Authorities out of public funds.E+W+S

[F2(1)It is the duty of the Secretary of State to pay to each Health Authority sums equal to their general Part II expenditure.

[F3(2)“General Part II expenditure” is expenditure which—

(a)is attributable to the payment of remuneration to persons providing services in pursuance of Part II; but

(b)does not fall within paragraphs (b) to (d) of subsection (3A).]

(3)It is the duty of the Secretary of State to pay to each Health Authority, in respect of each financial year, sums not exceeding the amount allotted for that year by the Secretary of State to the Authority towards meeting their main expenditure [F4in that year].

[F5(3AA)In determining the amount to be allotted for any year to a Health Authority under subsection (3) above (or in varying the amount under subsection (5) below), the Secretary of State may take into account (in whatever way he thinks appropriate)—

(a)the Authority’s general Part 2 expenditure, and

(b)expenditure which would have been the Authority’s general Part 2 expenditure but for an order under section 103(1) below,

during any period he thinks appropriate (or such elements of that expenditure as he thinks appropriate).]

[F6(3BB)Schedule 12A to this Act (which defines “general Part II expenditure” and “main expenditure” for the purposes of, and supplements, this section and section 97C below) shall have effect]]

[F7[F8(3C)Where the Secretary of State has made an initial determination of the amount (“the initial amount”) to be allotted for any year to a Health Authority under subsection (3) above, he may increase the initial amount by a further sum if it appears to him that over a period notified to the Authority—

(a)they satisfied any objectives notified to them as objectives to be met in performing their functions, or

(b)they performed well against any criteria notified to them as criteria relevant to the satisfactory performance of their functions (whether or not the method of measuring their performance against those criteria was also notified to them).]

(3D)In subsection (3C) above, “notified” means specified or referred to in a notice given to [F9the Health Authority] by the Secretary of State.

(3E)In making any increase under subsection (3C) above, the Secretary of State may (whether by directions under subsection (6) below or otherwise) impose any conditions he thinks fit on the application or retention by the authority of the sum in question.

(3F)Where the Secretary of State has, under subsection (3C) above, increased by any sum the amount to be allotted for any year to a Health Authority and notified the authority of the allotment and it subsequently appears to him that the authority have failed (wholly or in part) to satisfy any conditions imposed in making that increase, he may—

(a)reduce the allotment made to that authority for that year, or

(b)when he has made an initial determination of the amount (“the initial amount”) to be allotted for any subsequent year to the authority under subsection (3) above, reduce the initial amount,

by an amount not exceeding that sum.]

(4)It is the duty of the Secretary of State to pay in respect of each financial year to each Special Health Authority sums not exceeding the amount allotted for that year by the Secretary of State to the Special Health Authority towards meeting the expenditure of the Special Health Authority which is attributable to the performance by the Special Health Authority of their functions in that year.

(5)An amount is allotted to a Health Authority or Special Health Authority for a year under this section when they are notified by the Secretary of State that it is allotted to them for that year; and the Secretary of State may make an allotment under this section increasing or reducing an allotment previously so made.

(6)The Secretary of State may give directions to a Health Authority or Special Health Authority with respect to—

(a)the application of sums paid to them under [F10this section];

(b)the payment of sums by them to the Secretary of State in respect of charges or other sums referable to the valuation or disposal of assets; [F11or]

[F12(bb)the application of sums received by them under section 97C(4) below; or]

(c)the application by them of sums received by them by virtue of section 15(7)(a) of the M1National Health Service and Community Care Act 1990.

F13(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)Where an order establishing a Special Health Authority provides for any expenditure of the Special Health Authority to be met by a Health Authority or by two or more Health Authorities in portions determined by or in accordance with the order, it is the duty of the Health Authority, or each of the Health Authorities, to pay to the Special Health Authority sums equal to, or to the appropriate portion of, that expenditure.

(9)Sums falling to be paid [F14to Health Authorities or Special Health Authorities] under this section shall be payable subject to compliance with such conditions as to records, certificates or otherwise as the Secretary of State may determine.]