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Health and Care Act 2022

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62Capital spending limits for NHS foundation trusts

This section has no associated Explanatory Notes

(1)The National Health Service Act 2006 is amended as follows.

(2)After section 42A insert—

42BLimits on capital expenditure

(1)NHS England may make an order imposing a limit on the capital expenditure of an NHS foundation trust in respect of a single financial year.

(2)The order must specify—

(a)the trust,

(b)the capital expenditure limit, and

(c)the financial year to which the limit relates.

(3)NHS England must consult the trust before making the order.

(4)NHS England must publish each order under this section.

(5)An order under this section may be made at any time during or before the financial year to which it relates.

(6)A trust that is the subject of an order under this section must not exceed the capital expenditure limit imposed by the order during the financial year to which it relates.

(7)In this section “capital expenditure”, in relation to an NHS foundation trust, means expenditure of the trust which falls to be capitalised in its annual accounts.

42CGuidance in relation to orders under section 42B

(1)NHS England must publish guidance about the exercise of its power to make orders under section 42B, including guidance about—

(a)the circumstances in which it is likely to make an order, and

(b)the method it will use to determine the capital expenditure limit.

(2)NHS England must consult the Secretary of State before it publishes guidance, or revised guidance, under this section.

(3)NHS England must have regard to the guidance in exercising its power to make orders under section 42B.

(3)In section 64 (orders and regulations under Chapter 5), in subsection (1), after “regulations” insert “, other than the power to make an order under section 42B,”.

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