Correspondence

Secretary of State’s directions specifying the period to which joint capital resource use plans must relate

Published 6 March 2023

Applies to England

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This publication is available at https://www.gov.uk/government/publications/joint-capital-resource-use-plans-directions-to-icbs-and-nhs-trusts/secretary-of-states-directions-specifying-the-period-to-which-joint-capital-resource-use-plans-must-relate

I am writing to set out the new obligations under the Health and Care Act 2022 (the 2022 Act) for integrated care boards (ICBs) and partner NHS trusts and NHS foundation trusts to prepare joint capital resource use plans.

As you know, the 2022 Act established ICBs with effect from 1 July 2022 to empower local health and care leaders to join up planning and provision of services, both within the NHS and with local authorities. ICBs were also assigned obligations alongside their legal status. One such obligation is for ICBs and their partner NHS trusts and NHS foundation trusts to produce and publish annual joint capital resource use plans. The plans are intended to ensure there is transparency for local residents, patients, NHS health workers and other NHS stakeholders on how the capital funding provided to ICBs is being prioritised and spent to achieve the ICB’s strategic aims. This aligns with ICBs’ financial duty to ensure that their allocated capital is not overspent and their obligation to report annually on their use of resources. These allocations for 2023 to 2024 will be issued shortly by NHS England once the calculation has been finalised and planning guidance is cleared.

In accordance with the legislation, below I make directions specifying the period to which the joint capital resource use plans must relate. The Health and Care Act 2022 (Commencement No. 2 and Transitional and Saving Provision) Regulations 2022 requires ICBs to prepare the plans for the financial year 2022 to 2023 as soon as reasonably practicable after the giving of directions set out below.

For the financial year 2022 to 2023, the period must cover the entirety of the first 9 months of ICB operations, that is, from 1 July 2022 to 31 March 2023 but can be set out to reflect the financial year in its entirety. For future years (starting with financial year 2023 to 2024 and onwards) the period will be one financial year, unless amended by a future direction.

I recognise that this requirement has come late in the financial year and in recognition of this the plans for the financial year 2022 to 2023 will be required at a high level to include a short narrative on the main categories of expenditure. NHS England will facilitate this through using their existing budgetary information and providing a recommended template for use. It is important to me that this requirement is seen as an opportunity to set the baseline towards transparency for reporting for future years and a step towards ensuring the plan is a useful document in terms of showing how capital is contributing to ICBs’ priorities and delivering benefits to patients and healthcare users.

Directions

  1. The directions in this letter are given in exercise of the powers arising under section 14Z56(2) of the National Health Service Act 2006 (the 2006 Act) including as transitionally applied in relation of the financial year ending on 31 March 2023 in accordance with regulation 33(5) of the Health and Care Act 2022 (Commencement No. 2 and Transitional and Saving Provision) Regulations 2022 (S.I. 2022/734) (the 2022 regulations).

  2. In accordance with regulation 33(5) of the 2022 regulations, I direct integrated care boards, their partner NHS trusts and NHS foundation trusts to produce a joint capital resource use plan for the remainder of the financial year 2022 to 2023.

  3. In accordance with section 14Z56(2) of the 2006 Act, from 1 April 2023 onwards, I direct that the period for which each joint capital resource use plan must relate is the financial year immediately following the financial year in which each plan is to be published.

  4. This direction will be published in accordance with section 14Z56(3) of the 2006 Act. Following the publication of this letter, NHS England will provide more guidance with respect to the preparation of the plans for the remainder of this financial year and beyond.

I hope this letter is clear and helpful. Thank you in advance for your support in producing joint capital resource use plans and I look forward to seeing them.

This letter has been signed by authority of the Secretary of State for Health and Social Care.

With my very best wishes,

Lord Markham
Parliamentary Under Secretary of State

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