National Health Service Act 2006

227 Resource limits for Strategic Health Authorities and Special Health Authorities

(1) Each Strategic Health Authority and each Special Health Authority must ensure that the use of its resources in a financial year does not exceed the amount specified for it in relation to that year by the Secretary of State.

(2) For the purpose of subsection (1) the Secretary of State may give directions—

(a) specifying uses of resources which must, or must not, be taken into account,

(b) making provision for determining to which Strategic Health Authority or Special Health Authority certain uses of resources must be attributed,

(c) specifying descriptions of resources which must, or must not, be taken into account.

(3) The Secretary of State may give such directions to a Strategic Health Authority or Special Health Authority as appear to be requisite to secure that the Authority complies with the duty under subsection (1).

(4) Subsections (4) to (6) of section 226 apply in relation to the duty under subsection (1) of this section as they apply in relation to the duties under subsections (1) and (2) of that section; and for that purpose references to the defraying of expenditure and the receipt of sums are references to the incurring of liabilities and the acquisition of assets.

(5) Where the Secretary of State has specified an amount under this section in respect of a financial year, he may vary the amount by a later specification.

(6) In this section a reference to the use of resources is a reference to their expenditure, consumption or reduction in value.