Recommendations & Conclusions
7 items
5
Recommendation
First Report - The New Hospital Program…
Acknowledged
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 …
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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 which HM Treasury has provided indicative future funding, is founded on unrealistic assumptions. It assumes that increasing demand for hospital care from a growing and ageing population can be mitigated by a very high level of bed occupancy (95%), substantial reductions in patients’ average length of stay in hospital, and a significant, recurring 1.8% per annum transfer of patient care out of hospitals into community settings. The NHS already has very high levels of bed occupancy and short average lengths of stay relative to the health services of other advanced nations. It is common knowledge that many parts of the primary and social care sectors are under great strain. Making these assumptions more realistic, at either a programme or scheme level, is likely to increase the cost of new hospitals and make the programme more expensive, meaning this is an issue that needs urgent attention and may well require a further reset of NHP. Recommendation 5a: DHSC should amend its Minimum Viable Product version of Hospital 2.0 so it does not result in future hospitals that are too small, and should set out clearly how these future hospitals fit into its assessment of total required hospital capacity nationally and by region. b) The Health and Social Care Committee may wish to consider holding an inquiry into DHSC’s assumptions about the design of future hospitals.
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Government response AI summary
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 2024.
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HM Treasury
8
Conclusion
First Report - The New Hospital Program…
Acknowledged
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 …
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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 and patient care. DHSC diverted £4.3 billion of NHS capital funding from planned capital spending to day-to-day spending between 2014–15 and 2018–19; and by 2021–22 there was a record maintenance backlog of £10.2 billion. Under-investment in the estate has resulted in a situation that now requires urgent action. This includes but is not limited to the crisis with RAAC. Working in out-of-date buildings that have not been well maintained also makes it hard for the NHS to modernise and recover its performance to the standards required in the NHS Constitution, and is only likely to exacerbate problems in attracting and retaining staff. Recommendation 8: DHSC should not reduce planned capital investment to meet day-to-day spending needs in future; if officials were to consider doing this again we would expect the Permanent Secretary to write to Ministers explaining the likely real-life consequences of such a course of action. The New Hospital Programme 9 1 Progress in construction and developing new hospital design
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Government response AI summary
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 advice.
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HM Treasury
22
Conclusion
First Report - The New Hospital Program…
Acknowledged
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 …
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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 by £18 million of additional funding from NHS England in 2021–22 and 2022–23 as well as an unspecified amount from trusts’ own capital.46 By December 2022, DHSC had identified 41 NHS buildings with RAAC, spread across 23 trusts. This includes the seven hospitals with RAAC throughout.47
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Government response AI summary
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 Reviews.
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HM Treasury
25
Conclusion
First Report - The New Hospital Program…
Acknowledged
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 …
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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 already expected to complete a full survey of their estate every five years.56
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Government response AI summary
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 existing work.
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HM Treasury
27
Conclusion
First Report - The New Hospital Program…
Acknowledged
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 …
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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 then added, making 32 new hospital schemes in the original NHP announcement. A further eight unspecified new hospital schemes were also promised.61 To bring the total schemes under NHP’s management to 48, eight pre-existing schemes were also moved into the programme.62
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Government response AI summary
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.
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HM Treasury
41
Conclusion
First Report - The New Hospital Program…
Acknowledged
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 …
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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 made on the long NHS waiting lists.93 According to the NHS Constitution, NHS providers are required to comply with legal requirements to deliver care in a clean, secure and suitable environment that is properly maintained. Parts of the NHS estate do not meet the demands of a modern health service.94
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Government response AI summary
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.
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HM Treasury
42
Conclusion
First Report - The New Hospital Program…
Acknowledged
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 …
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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 some interim spending on the maintenance of buildings that would be replaced, but also noted that this might be necessary for patient and safety care.95 88 Committee of Public Accounts, Sustainability and financial performance of acute hospital trusts, Thirtieth Report of Session 2015–16, HC 709, 15 March 2016; Committee of Public Accounts, Financial sustainability of the NHS, Forty-third Report of Session 2016–17, HC 887, 27 February 2017; Committee of Public Accounts, Sustainability and transformation in the NHS; Twenty-Ninth Report of Session 2017–19, HC 793, 27 March 2018; Committee of Public Accounts, NHS financial sustainability: progress review, Ninety-First Report of Session 2017–19, HC 1743, 3 April 2019; Committee of Public Accounts, NHS capital expenditure and financial management, Eighth Report of Session 2019–21, HC 344, 8 July 2020. 89 C&AG’s Report, para 5 90 C&AG’s Report, para 5 91 Committee of Public Accounts, Introducing Integrated Care Systems, Thirty-Fifth Report of Session 2022–23, HC 47, 8 February 2023 92 House of Commons Committee of Public Accounts report, Accountability to Parliament for taxpayers’ money, Thirty-Ninth Report of Session 2015–26 [summary], HC 732, 4 May 2016 93 NHP0004 94 C&AG’s Report, para 1.2 95 Qq 86, 90 The New Hospital Programme 21
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Government response AI summary
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.
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HM Treasury