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National Health Service Act 2006

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This is the original version (as it was originally enacted).

Strategic Health Authorities and Special Health Authorities

224Means of meeting expenditure of Strategic Health Authorities out of public funds

(1)The Secretary of State must pay in respect of each financial year to each Strategic Health Authority sums not exceeding the amount allotted for that year by the Secretary of State to the Strategic Health Authority towards meeting the expenditure of the Strategic Health Authority which is attributable to the performance by it of its functions in that year.

(2)Where the Secretary of State has made an initial determination of the amount (“the initial amount”) to be allotted for any year to a Strategic Health Authority under subsection (1), he may increase the initial amount by a further sum if it appears to him that over a period notified to the Strategic Health Authority—

(a)it satisfied any objectives notified to it as objectives to be met in performing its functions, or

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

(3)“Notified” means specified or referred to in a notice given to the Strategic Health Authority by the Secretary of State.

(4)In making any increase under subsection (2), the Secretary of State may (whether by directions under subsection (9) or otherwise) impose any conditions he considers appropriate on the application or retention by the Strategic Health Authority of the sum in question.

(5)Subsection (6) applies where—

(a)the Secretary of State has, under subsection (2), increased by any sum the amount to be allotted for any year to a Strategic Health Authority,

(b)the Secretary of State has notified the Strategic Health Authority of the allotment, and

(c)it subsequently appears to the Secretary of State that the Strategic Health Authority has failed (wholly or in part) to satisfy any conditions imposed in making that increase.

(6)Where this subsection applies, the Secretary of State may reduce—

(a)the allotment made to that Strategic Health 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 Strategic Health Authority under subsection (1), the initial amount,

by an amount not exceeding the sum mentioned in subsection (5)(a).

(7)An amount is allotted to a Strategic Health Authority for a year under this section when it is notified by the Secretary of State that the amount is allotted to it for that year.

(8)The Secretary of State may, subject to subsection (6), make an allotment under this section increasing or reducing an allotment previously so made; and the reference to a determination in subsection (2) includes a determination made with a view to increasing or reducing an allotment previously so made.

(9)The Secretary of State may give directions to a Strategic Health Authority with respect to—

(a)the application of sums paid to it under this section, or

(b)the payment of sums by it to the Secretary of State in respect of charges or other sums referable to the valuation or disposal of assets.

(10)Sums falling to be paid to Strategic Health Authorities under this section are payable subject to such conditions as to records, certificates or otherwise as the Secretary of State may determine.

225Means of meeting expenditure of Special Health Authorities out of public funds

(1)The Secretary of State must 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 it of its functions in that year.

(2)An amount is allotted to a Special Health Authority for a year under this section when it is notified by the Secretary of State that the amount is allotted to it for that year.

(3)The Secretary of State may make an allotment under this section increasing or reducing an allotment previously so made.

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

(a)the application of sums paid to it under this section, or

(b)the payment of sums by it to the Secretary of State in respect of charges or other sums referable to the valuation or disposal of assets.

(5)Sums falling to be paid to Special Health Authorities under this section are payable subject to such conditions as to records, certificates or otherwise as the Secretary of State may determine.

226Financial duties of Strategic Health Authorities and Special Health Authorities

(1)Each Strategic Health Authority must, in respect of each financial year, perform its functions so as to secure that its expenditure which is attributable to the performance by it of its functions in that year does not exceed the aggregate of—

(a)the amount allotted to it for that year under section 224(1),

(b)any sums received by it in that year under any provision of this Act (other than sums received by it under that subsection), and

(c)any sums received by it in that year otherwise than under this Act for the purpose of enabling it to defray any such expenditure.

(2)Each Special Health Authority must, in respect of each financial year, perform its functions so as to secure that its expenditure which is attributable to the performance by it of its functions in that year does not exceed the aggregate of—

(a)the amount allotted to it for that year under section 225(1),

(b)any sums received by it in that year under any provision of this Act (other than sums received by it under that subsection), and

(c)any sums received by it in that year otherwise than under this Act for the purpose of enabling it to defray any such expenditure.

(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) or (2).

(4)To the extent to which—

(a)any expenditure is defrayed by a Strategic Health Authority or Special Health Authority as trustee or on behalf of a Strategic Health Authority or Special Health Authority by special trustees, or

(b)any sums are received by a Strategic Health Authority or Special Health Authority as trustee or under section 222,

that expenditure and, subject to subsection (6), those sums, must be disregarded for the purposes of this section.

(5)For the purposes of this section sums which, in the hands of a Strategic Health Authority or Special Health Authority, cease to be trust funds and become applicable by the Authority otherwise than as trustee must be treated, on their becoming so applicable, as having been received by the Authority otherwise than as trustee.

(6)Of the sums received by a Strategic Health Authority or Special Health Authority under section 222, so much only as accrues to the Authority after defraying any expenses incurred in obtaining them must be disregarded under subsection (4).

(7)Subject to subsection (4), the Secretary of State may by directions determine—

(a)whether specified sums must, or must not, be treated for the purposes of this section as received under this Act by a specified Strategic Health Authority or specified Special Health Authority,

(b)whether specified expenditure must, or must not, be treated for those purposes as—

(i)expenditure within subsection (1) of a specified Strategic Health Authority, or

(ii)expenditure within subsection (2) of a specified Special Health Authority, or

(c)the extent to which, and the circumstances in which, sums received—

(i)by a Strategic Health Authority under section 224, or

(ii)by a Special Health Authority under section 225,

but not yet spent must be treated for the purposes of this section as part of the expenditure of the Strategic Health Authority or Special Health Authority and to which financial year’s expenditure they must be attributed.

(8)“Specified” means of a description specified in the directions.

227Resource 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.

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