Recommendation 22

Of the £8.1 billion estimated to be needed to deliver its digital transformation ambitions, NHSE&I expects that £5.1 billion will be funded by national bodies. This includes £2.2 billion of revenue funding, which covers day-to-day activities, and £2.9 billion of capital funding, which covers investments in new buildings or equipment.47 The National Audit Office found that NHSE&I’s costing estimates for the £8.1 billion were based on very limited cost data, using information from just 14 trusts. We asked whether the Department was confident that the £8.1 billion would be enough to achieve its ambitions, particularly given problems of under-investment in the past. The Department told us that it was confident that the £8.1 billion would be enough to achieve its ambitions and make good progress, but recognised that investment in digital capability would be an “enduring 41 Qq 33 & qq83–85 42 C&AG’s Report, para 6 43 DGT0011 - NHS Providers submission, para 5; DGT0007 - The Royal College of Midwives submission, para 25; DGT0014 - NHS Confederation submission, para 6 44 House of Commons Committee of Public Accounts, NHS capital expenditure and financial management, HC344, Session 2019–21, 8 July 2020. Available at: https://committees.parliament.uk/publications/1779/documents/17455/ default/. 45 Q89 46 Q79; House of Commons Committee of Public Accounts, NHS capital expenditure and financial management, HC344, Session 2019–21, 8 July 2020. 47 C&AG’s Report, para 6 16 Digital transformation in the NHS feature” of the NHS. The Department explained that the £2.9 billion of capital funding will be subject to approval at the next spending review, due in autumn 2020. We asked the Department whether the COVID-19 outbreak would put extra financial pressures on the Department’s spending. In response, it told us that that “generally speaking” the Treasury had been meeting additional costs that have resulted from the pandemic and it was not expecting any additional financial pressures