Select Committee · Public Accounts Committee

New Hospital Programme

Status: Closed Opened: 20 Jul 2023 Closed: 8 Mar 2024 1 recommendation 41 conclusions 1 report

The New Hospital Programme was set up in 2020 to build 40 new hospitals in England by 2030. It has £3.7 billion in capital funding for this for up to March 2025, with more to be provided for the following five years. The Programme is also intended to transform how NHS healthcare infrastructure is built, …

Clear

Reports

1 report
Title HC No. Published Items Response
First Report - The New Hospital Programme HC 77 17 Nov 2023 42 Responded

Recommendations & Conclusions

7 items
5 Recommendation First Report - The New Hospital Program… Acknowledged

Amend Hospital 2.0 design to prevent undersized hospitals and assess national capacity.

DHSC is at risk of locking in a standard design that will result in future hospitals being too small, which could lead to significantly greater expenditure and disruption in the long run. The version of Hospital 2.0 that DHSC used in its business case for NHP, and the basis on …

Government response. The government notes the recommendation, stating it will engage with any future Health and Social Care Committee inquiries and is continuing to review Hospital 2.0 designs with experts to meet local needs, with the next product release expected in May …
HM Treasury
8 Conclusion First Report - The New Hospital Program… Acknowledged

Safeguard planned capital investment from diversion to meet day-to-day spending needs.

The raiding of capital budgets in the recent past is an underlying cause of the estates crisis the NHS is now in. As this Committee has highlighted several times, DHSC has for some years focused on short-term financial viability in ways that failed to consider the long-term consequences for services …

Government response. The government agrees in principle not to reduce planned capital investment, but states it will continue to follow its usual processes for financial decisions, including switching capital budgets in exceptional circumstances, and will make considerations clear as part of Ministerial …
HM Treasury
22 Conclusion First Report - The New Hospital Program… Acknowledged

Government committed to remove RAAC by 2035 with time-limited funding allocation.

NHS England told us that it had set up a separate programme in 2019 to deal with RAAC.44 In 2020, government committed to remove RAAC from the NHS estate by 2035, subsequently allocating £685 million for RAAC management and remediation for the period up to 2024–25.45 This has been supplemented …

Government response. The government acknowledges its commitment to eradicate RAAC by 2035, stating this will remain under review. It notes ongoing work to rebuild affected hospitals and assesses financial implications, with future funding needs beyond 2024-25 to be addressed in subsequent Spending …
HM Treasury
25 Conclusion First Report - The New Hospital Program… Acknowledged

Trusts primarily responsible for RAAC risk management, despite some national technical support.

We asked whether NHS trusts were getting adequate help from national bodies given the risks they had to manage. NHS England told use that it was helping trusts to source the right technical support, but trusts themselves were responsible for managing their estate and the risks within it.55 Trusts were …

Government response. The government, despite stating 'recommendation implemented', broadly outlines ongoing work with NHS Trusts to expedite RAAC surveys and publish information. It doesn't specifically address the committee's observation on the adequacy of help provided to trusts, beyond implying continued support through …
HM Treasury
27 Conclusion First Report - The New Hospital Program… Acknowledged

New Hospital Programme expanded to 48 schemes, incorporating HIP and pre-existing projects.

DHSC launched a major capital investment programme, the Health Infrastructure Plan (HIP), in 2019. It comprised 27 schemes, all of which joined NHP in 2020. When one of the HIP schemes was split into five separate schemes, the total number grew to 31. An additional scheme (Shotley Bridge Hospital) was …

Government response. The government acknowledges the committee's summary by providing background on the deteriorating NHS estate, the commitment to build 40 new hospitals by 2030, and the establishment and funding of the New Hospital Programme to address these issues.
HM Treasury
41 Conclusion First Report - The New Hospital Program… Acknowledged

Under-investment in NHS capital impedes productivity and compromises modern healthcare environment standards.

In written evidence, the NHS Confederation also highlighted to us that the NHS was suffering because of the under-investment in capital. It said this was hampering productivity and efficiency at a time when record numbers of adults were unable to work owing to ill health and progress needed to be …

Government response. The government acknowledged the Committee's findings on under-investment in NHS capital, stating it provides record amounts of capital and is committed to providing more certainty through rolling investment programmes.
HM Treasury
42 Conclusion First Report - The New Hospital Program… Acknowledged

New Hospital Programme expected to address approximately one-third of existing NHS maintenance backlog.

We asked DHSC whether NHP would affect the maintenance backlog. DHSC told us that the programme would help to address the backlog because around a third of the reported backlog was at sites that would be redeveloped or replaced by an NHP scheme. NHS England accepted that there would be …

Government response. The government acknowledged the Committee's observations regarding the New Hospital Programme and maintenance backlog, reiterating its commitment to capital investment and providing record funding for the NHS.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
7 Sep 2023 Amanda Pritchard · NHS England, Julian Kelly · NHS England, Natalie Forrest · Department of Health and Social Care, Professor Sir Stephen Powis · NHS England, Shona Dunn · Home Office View ↗

Correspondence

2 letters
DateDirectionTitle
26 Feb 2024 Correspondence from Shona Dunn, Second Permanent Secretary, Department of Healt…
16 Oct 2023 Correspondence from Shona Dunn, Second Permanent Secretary, Department for Heal…