National Health Service (Wales) Act 2006

176 Resource limits for Local Health Boards

(1) Each Local Health Board 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 Welsh Ministers.

(2) For the purpose of subsection (1) no account may be taken of any use of resources for the purpose of a Local Health Board’s general ophthalmic and pharmaceutical services expenditure.

(3) But in specifying an amount for a Local Health Board under subsection (1) (or in varying the amount under subsection (5)), the Welsh Ministers may take into account (in whatever way they consider appropriate)—

(a) any such use of resources, and

(b) the use of any resources which would have been for the purpose of the Local Health Board’s general ophthalmic and pharmaceutical services expenditure but for an order under section 180(2) (special arrangements as to payment of remuneration),

during any period they consider appropriate (or such elements of such uses of resources as they consider appropriate).

(4) For the purpose of subsection (1) the Welsh Ministers may give directions—

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

(b) making provision for determining to which Local Health Board certain uses of resources must be attributed,

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

(5) Where the Welsh Ministers have specified an amount under this section in respect of a financial year, they may vary the amount by a later specification.

(6) Subsections (3) to (5) of section 175 apply in relation to the duty under subsection (1) of this section as they apply in relation to the duty under subsection (1) 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.

(7) The Welsh Ministers may give such directions to a Local Health Board as appear to be requisite to secure that it complies with the duty under subsection (1).

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