Local Health Board finances a concern for National Assembly Committee

17 July 2012

The National Assembly for Wales’s Finance Committee remains concerned about the state of local health board finances in Wales, following its scrutiny of the Supplementary Budget 2012-2013.

During its scrutiny, the Committee questioned Finance Minister, Jane Hutt AM, about additional transitional support of £80m over four years to Hywel Dda Local Health Board.

The Committee has called on the Minister for Health and Social Services,Lesley Griffiths AM, to provide further information to reassure its Members about the robustness of LHB financial plans and will be inviting her to address a Committee meeting in the autumn.

Following the recent Wales Audit Office report, which found that the current position of local health boards’ finances is unaffordable and that changes are necessary to secure its long term future, the Committee has decided to consult with the National Assembly’s Public Accounts and Health and Social Care Committees to ensure that there is full scrutiny of this area.

Funding for the NHS in Wales consumes 40% of all Welsh Government spending. Health is the largest section of the budget, and the vast majority of health spending goes to Local Health Boards.

“In Governmental terms, this Supplementary Budget concerns relatively small sums of money. In total, it involves less than 1% of the total Welsh Government annual budget,” said Chair of the Finance Committee, Jocelyn Davies AM.

“However, against the backdrop of severe economic constraints, we still have real serious concerns about the financial state of local health boards. These are challenging times for our boards and we need reassurance that their financial future is sustainable and affordable.

“We look forward to hearing from the Minister for Health and Social Services when she comes before the Committee in the autumn.”

The full report and more information on the Finance Committee can be found here