National Health Service Act 1977

[F1 97AA Resource limits for Health Authorities and Special Health Authorities. E+W+S

(1) It is the duty of [F2 every Strategic Health Authority,] every Health Authority and every Special Health Authority to ensure that the use of their resources in a financial year does not exceed the amount specified for them in relation to that year by the Secretary of State.

(2) In the application of subsection (1) above to a Health Authority no account shall be taken of any use of resources for the purpose of general Part II expenditure (within the meaning of paragraph 1 of Schedule 12A).

[F3 (2A) But in specifying an amount for a Health Authority under subsection (1) above (or in varying the amount under subsection (6) below), the Secretary of State may take into account (in whatever way he thinks appropriate)—

(a) any such use of resources, and

(b) the use of any resources which would have been for the purpose of the Authority’s general Part 2 expenditure but for an order under section 103(1) below,

during any period he thinks appropriate (or such elements of such uses of resources as he thinks appropriate).]

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

(a) specifying uses of resources which are to be, or not to be, taken into account;

(b) making provision for determining to which [F4 Strategic Health Authority,] Health Authority or Special Health Authority certain uses of resources are to be attributed;

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

(4) Subsections (6) to (8) of section 97A above shall apply in relation to the duty under subsection (1) above as they apply in relation to the duties under section 97A(1) and (2); and for that purpose references to the defraying of expenditure and the receipt of sums shall be construed as references to the incurring of liabilities and the acquisition of assets.

(5) The provisions in section 97A(3) and (4) above about the giving of directions by the Secretary of State shall apply in relation to the duty under subsection (1) above as they apply in relation to the duties under section 97A(1) and (2).

(6) 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.

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

Textual Amendments

F1 S. 97AA inserted (22.12.2000 for E. for specified purposes, 1.4.2001 for other specified purposes and otherwise prosp) by 2000 c. 20, ss. 12(1), 30; S.I. 2000/3349, arts. 2(c), 3(1)(a), 4 (with transitional provisions in art. 5)

F2 Words in s. 97AA(1) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 5(a); S.I. 2002/2478, art. 3(1)(e)

F3 S. 97AA(2A) inserted (22.10.2001 for E. and otherwise prosp.) by 2001 c. 15, ss. 1(2), 70(2) (with ss. 64(9), 65(4)); S.I. 2001/3619, art. 2(1) (with effect as mentioned in art. 2(2))

F4 Words in s. 97AA(3)(b) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 5(b); S.I. 2002/2478, art. 3(1)(e)

Modifications etc. (not altering text)

C1 S. 97AA amended (W.) (prosp.) by 2000 c. 20, ss. 12(2), 30