, 13 tweets, 4 min read Read on Twitter
1/12 Was the £1.8bn extra new money or not? ‘Two days later’ final thoughts thread. Still agree that @sallygainsbury description is correct. Many trusts worked hard to hit control totals and gain STF/PSF money. They were told they could spend it on capital priojects...
2/12 Trusts were then told to cut their 2019/20 capital spending by 20% to avoid breaching the DHSC capital spending limit. Monday’s announcement reversed that cut. So if that is your definition of not new or extra money, I completely agree subject to one small wrinkle....
3/12 It’s only part of the “restored proposed cut” that will be funded from trust cash balances - some of it will be funded direct from DHSC. We don’t know the balance at this point. So, technically, it’s wrong to imply that it’s all trust cash balance funded.
4/12 However, in looking at this, it’s important not to mix up two different things - the amount the NHS can spend on capital and how that spend is funded. Monday’s announcement allows the NHS to spend £1bn more than previously. The DHSC capital limit has been raised accordingly
5/12 Anyone who understands Government accounting knows this is a big deal. The last Govt categorically told us it was not prepared to do this, not least because it would formally count against a tightly controlled total Govt capital spend, irrespective of how funded.
6/12 We think it’s therefore legitimate to describe this as new, extra, money. And nobody anywhere has challenged us on this line of argument - that it is legitimate to describe raising the 2019/20 CDEL in this way, irrespective of how funded, as new and extra money.
7/12 Several people have said this is dull, technical, boring, accounting detail. In some senses, I agree. But that risks under-estimating the fact that this is an important decision that has a real meaningful impact on the Government’s overall 2019/20 financial position.
8/12 Important supporting evidence on this being new/extra money is that Barnett consequentials calculated against entire £1.8bn. Govt has given devolved administrations (where argument about provider cash balances is irrelevant) on basis that this is new & extra money.
9/12 What’s the practical consequence of Monday’s announcement? Trusts will now be able to spend £1bn on capital projects in 2019/20 that they weren’t previously able to. If you disregard the funding source, that can legitimately be described as new and extra.....
10/12 That’s why we continue to argue that @sallygainsbury and Govt both correct. Anyone who says we are wrong because @sallygainsbury is right is missing point - both things can be simultaneously true. One is about amount of capital spending and one is about how that’s funded.
11/12 Best way to resolve is to be precise and say...”Monday’s announcement gives NHS £1bn extra new 2019/20 capital spending power but some of that will be funded from provider cash balances they were intending to spend anyway, were told they couldn’t spend, but now can.
12/12 Happy to be told our argument is illegitimate or wrong, esp by @AnitaCTHF / @RichardDMurray1 as they’ve got both Govt & NHS perspectives. Sorry to pick at this but it’s important to @NHSProviders that we are seen to be accurate and impartial. Our reputation matters to us.
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