Miscellaneous
Section 33: Taxation
122.Subsection (1) amends section 519A of the Income and Corporation Taxes Act 1988. This amendment exempts NHS foundation trusts from income and corporation taxes.
123.Subsection (2) amends section 61(3) of the 1990 Act. This amendment exempts NHS foundation trusts from stamp duty.
124.Subsection (3) amends section 41(7) of the Value Added Tax Act 1994. This amendment provides for Value Added Tax to apply to NHS foundation trusts in the same way it applies to NHS trusts.
Section 34: Other amendments relating to NHS foundation trusts
125.This section introduces Schedule 4, which includes various minor and consequential amendments relating to NHS foundation trusts.
126.Paragraph 18 amends section 113 of the Local Government Act 1972. This amendment allows NHS foundation trusts to enter into joint staffing arrangements with local authorities.
127.Paragraph 20 amends Part 3 of Schedule 1 of the House of Commons Disqualification Act 1975. This amendment disqualifies Chairmen and other non-executive directors of NHS foundation trusts from membership of the House of Commons.
128.Paragraph 25 amends section 22 of the 1977 Act. This amendment includes NHS foundation trusts among the list of NHS bodies required to co-operate with one another in exercising their functions.
129.Paragraph 34 amends section 91 of the 1977 Act. This amendment sets out that where property held on trust is given to an NHS foundation trust for a specified purpose, the trustees for the NHS foundation trust must apply those funds for the specified purpose.
130.Paragraph 37 amends section 96A of the 1977 Act. This amendment allows NHS foundation trusts to raise money by appeals etc. and to hold, administer and apply any property given on trust for the purpose it was given.
131.Paragraph 84 amends section 21 of the 1990 Act. This amendment provides that NHS foundation trusts may choose to participate in schemes established by the Secretary of State for meeting losses and liabilities etc. of certain health service bodies. Paragraph 109 amends section 31 of the Health Act 1999. This amendment allows regulations to be made which enable NHS foundation trusts to enter into joint arrangements with local authorities.
132.Paragraph 116 amends section 7 of the Health and Social Care Act 2001. This amendment provides for the powers of local authority oversight and scrutiny committees to apply to NHS foundation trusts as to other NHS bodies.
Section 35: Conduct of elections
133.This section provides a power for the Secretary of State to make regulations about the conduct of elections for the membership of an NHS foundation trust. The regulations may include details on the nomination of candidates, systems and methods of voting, supervision of elections and the consequences of irregularities. There is also a power to create offences, punishable on summary conviction with a maximum fine not exceeding level 4 on the standard scale.
Section 36: Offence
134.This section makes it an offence for a person to vote at an election to the Board of Governors, stand for election to the Board of Governors or vote at a meeting of the Board of Governors unless the person has made a declaration about the particulars of his qualification to be a member of the corporation. The provision does not apply to elections held for the staff constituency.
Section 37: Representative membership
135.This section provides that an authorisation may require an NHS foundation trust to take steps to ensure that, taken as a whole, the actual membership of its public constituency (and, if there is one, of its patients’ constituency) is representative of the population eligible for such membership.
Section 38: Audit
136.This section introduces Schedule 5 which sets out provisions relating to the audit of NHS foundation trusts’ accounts.
137.Paragraph 1 of the Schedule places a number of duties on auditors of NHS foundation trusts. They include a duty that, when auditing an NHS foundation trust’s accounts, the auditor must be satisfied that they are prepared in accordance with directions and any relevant enactments, and that proper practices have been observed in their compilation. The auditor must also be satisfied that the trust has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.
138.Paragraph 2 gives the auditor rights of access to documents and information relating to the NHS foundation trust. The provision also gives auditors the power to require such explanation as is necessary to enable an audit to be properly completed. Failure to provide information, or to give an explanation related to audit matters, is an offence.
139.Paragraphs 3 to 5 set out some provisions relating to auditors’ reports on NHS foundation trusts, including requirements for submitting reports.
140.Paragraph 6 requires the auditor to inform the Independent Regulator if an NHS foundation trust has or is about to incur unlawful expenditure or take action that is likely to be unlawful and cause a loss or deficiency.
141.Paragraph 8 places restrictions on when auditors may disclose information relating to an NHS foundation trust. It is an offence to contravene these restrictions.
Section 39: General duty of NHS foundation trusts
142.This section requires each NHS foundation trust to exercise its functions effectively, efficiently, and economically.
