(1)Each Primary Care Trust 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 (not including its pharmaceutical services expenditure) does not exceed the aggregate of—
(a)the amount allotted to it for that year under section 228(1)(b),
(b)any sums received by it in that year under any provision of this Act (other than sums received by it under that section), 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)The Secretary of State may give such directions to a Primary Care Trust as appear to be requisite to secure that it complies with the duty under subsection (1).
(3)To the extent to which—
(a)any expenditure is defrayed by a Primary Care Trust as trustee or on behalf of a Primary Care Trust by special trustees, or
(b)any sums are received by a Primary Care Trust as trustee or under section 222,
that expenditure and, subject to subsection (5) those sums, must be disregarded for the purposes of this section.
(4)For the purposes of this section sums which, in the hands of a Primary Care Trust, cease to be trust funds and become applicable by the Primary Care Trust otherwise than as trustee must be treated, on their becoming so applicable, as having been received by the Primary Care Trust otherwise than as trustee.
(5)Of the sums received by a Primary Care Trust under section 222 so much only as accrues to the Primary Care Trust after defraying any expenses incurred in obtaining them must be disregarded under subsection (3).
(6)Subject to subsection (3), 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 Primary Care Trust,
(b)whether specified expenditure must, or must not, be treated for those purposes as expenditure within subsection (1) of a specified Primary Care Trust, or
(c)the extent to which, and the circumstances in which, sums received by a Primary Care Trust under section 228 but not yet spent must be treated for the purposes of this section as part of the expenditure of the Primary Care Trust and to which financial year’s expenditure they must be attributed.
(7)“Specified” means of a description specified in the directions.