After section 28B of the 1977 Act there is inserted—
(1)A local authority may, if they think fit, make payments to a relevant NHS body towards expenditure incurred or to be incurred by the body in connection with the performance by the body of prescribed functions of the NHS body.
(2)In this section—
“prescribed” means prescribed to any extent by regulations made by the Secretary of State;
“relevant NHS body” means a Health Authority or a Primary Care Trust.
(3)A payment under this section may be made in respect of expenditure of a capital or of a revenue nature or in respect of both kinds of expenditure.
(4)The Secretary of State may by directions prescribe conditions relating to payments under this section.
(5)The power to give such directions may be exercised so as to make, as respects the cases in relation to which it is exercised, the same provision for all cases, or different provision for different cases or different classes of case, or different provision as respects the same case or class of case for different purposes.
(6)Without prejudice to the generality of subsection (4) above, the power may be exercised—
(a)so as to make different provision for England and Wales and different provision for different areas in either; and
(b)so as to require, in such circumstances as may be specified—
(i)repayment of the whole or any part of a payment under this section; or
(ii)payment, in respect of property acquired with money paid under this section, of an amount representing the whole or part of an increase in the value of the property which has occurred since its acquisition.
(7)No payment shall be made under this section in respect of any expenditure unless the conditions relating to it conform with the conditions prescribed for payments of that description under subsection (4) above.”