National Health Service Act 1977

[F1 97 Means of meeting expenditure of Health Authorities and Special Health Authorities out of public funds. E+W+S

[F2 (1) It is the duty of the Secretary of State to pay to each Health Authority sums equal to their general Part II expenditure.

[F3 (2) “General Part II expenditure” is expenditure which—

(a) is attributable to the payment of remuneration to persons providing services in pursuance of Part II; but

(b) does not fall within paragraphs (b) to (d) of subsection (3A).]

(3) It is the duty of the Secretary of State to pay to each Health Authority, in respect of each financial year, sums not exceeding the amount allotted for that year by the Secretary of State to the Authority towards meeting their main expenditure [F4 in that year].

[F5 (3AA) In determining the amount to be allotted for any year to a Health Authority under subsection (3) above (or in varying the amount under subsection (5) below), the Secretary of State may take into account (in whatever way he thinks appropriate)—

(a) the Authority’s general Part 2 expenditure, and

(b) expenditure which would have been the Authority’s general Part 2 expenditure but for an order under section 103(1) below,

during any period he thinks appropriate (or such elements of that expenditure as he thinks appropriate).]

[F6 (3BB) Schedule 12A to this Act (which defines “general Part II expenditure” and “main expenditure” for the purposes of, and supplements, this section and section 97C below) shall have effect]]

[F7 (3C) Where the Secretary of State has made an initial determination of the amount (“the initial amount”) to be allotted for any year to a Health Authority under subsection (3) above, he may, if it appears to him that the authority satisfied in any preceding year any objectives notified as objectives to be met by Health Authorities for the purposes of this subsection in performing their functions, increase the initial amount by a further sum.

(3D) In subsection (3C) above, “notified” means specified or referred to in a notice given to Health Authorities by the Secretary of State.

(3E) In making any increase under subsection (3C) above, the Secretary of State may (whether by directions under subsection (6) below or otherwise) impose any conditions he thinks fit on the application or retention by the authority of the sum in question.

(3F) Where the Secretary of State has, under subsection (3C) above, increased by any sum the amount to be allotted for any year to a Health Authority and notified the authority of the allotment and it subsequently appears to him that the authority have failed (wholly or in part) to satisfy any conditions imposed in making that increase, he may—

(a) reduce the allotment made to that authority for that year, or

(b) when he has made an initial determination of the amount (“the initial amount”) to be allotted for any subsequent year to the authority under subsection (3) above, reduce the initial amount,

by an amount not exceeding that sum.]

(4) It is the duty of the Secretary of State to pay in respect of each financial year to each Special Health Authority sums not exceeding the amount allotted for that year by the Secretary of State to the Special Health Authority towards meeting the expenditure of the Special Health Authority which is attributable to the performance by the Special Health Authority of their functions in that year.

(5) An amount is allotted to a Health Authority or Special Health Authority for a year under this section when they are notified by the Secretary of State that it is allotted to them for that year; and the Secretary of State may make an allotment under this section increasing or reducing an allotment previously so made.

(6) The Secretary of State may give directions to a Health Authority or Special Health Authority with respect to—

(a) the application of sums paid to them under [F8 this section];

(b) the payment of sums by them to the Secretary of State in respect of charges or other sums referable to the valuation or disposal of assets; [F9 or]

[F10 (bb) the application of sums received by them under section 97C(4) below; or]

(c) the application by them of sums received by them by virtue of section 15(7)(a) of the M1 National Health Service and Community Care Act 1990.

F11 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Where an order establishing a Special Health Authority provides for any expenditure of the Special Health Authority to be met by a Health Authority or by two or more Health Authorities in portions determined by or in accordance with the order, it is the duty of the Health Authority, or each of the Health Authorities, to pay to the Special Health Authority sums equal to, or to the appropriate portion of, that expenditure.

(9) Sums falling to be paid [F12 to Health Authorities or Special Health Authorities] under this section shall be payable subject to compliance with such conditions as to records, certificates or otherwise as the Secretary of State may determine.]

Textual Amendments

F1 S. 97 substituted (28.6.1995 for specified purposes and otherwise 1.4.1996) by 1995 c. 17, ss. 2(1)(3), 8(1), Sch. 1 Pt. I para. 47 (with Sch. 2 para. 6)

F2 S. 97(1)-(3B) substituted (14.10.1997) for s. 97(1)-(3) by 1997 c. 46, s. 36; S.I. 1997/2457, arts. 2, 3

F3 S. 97(2) omitted (1.9.1999 for E. with effect for the financial year 1999-2000 and subsequent financial years and otherwiseprosp. ) by 1999 c. 8, ss. 4(2)(a)(4), 67; S.I. 1999/2342, art. 2(1), Sch. 1 and s. 97(2) repealed (prosp.) by 1999 c. 8, ss. 65(2), 67(1), Sch. 5 Note

F4 Words in s. 97(3) inserted (1.9.1999 for E. with effect for the financial year 1999-2000 and subsequent financial years and otherwiseprosp.) by 1999 c. 8, ss. 4(2)(b)(4), 67; S.I. 1999/2342, art. 2(1), Sch. 1

F5 S. 97(3AA) inserted (22.10.2001 for E. and otherwiseprosp.) by 2001 c. 15, ss. 1(2), 70(2) (with ss. 64(9), 65(4)); S.I. 2001/3619, art. 2(1) (with effect as mentioned in art. 2(2)

F6 S. 97(3BB) substituted for s. 97(3A)(3B)(1.9.1999 for E. for specified purposes with effect for the financial year 1999-2000 and subsequent financial years, 1.4.2000 oherwise andprosp. for W.) by virtue of 1999 c. 8, ss. 4(2)(c)(4), 67; S.I. 1999/2342, art. 2(1)(4), Schs. 1, 3

F7 S. 97(3C)-(3F) inserted (1.9.1999 for E. and otherwiseprosp.) by 1999 c. 8, ss. 8, 67; S.I. 1999/2342, art. 2(1), Sch.

F8 Words in s. 97(6)(a) substituted (1.4.1998) by 1997 c. 46, s. 41(10), Sch. 2 Pt. I para. 22; S.I. 1998/631, art. 2(b), Sch. 2 (with arts. 3-5)

F9 Word in s. 97(6)(b) omitted (1.4.2000 for E. and otherwiseprosp.) by virtue of 1999 c. 8, ss. 65, 67, Sch. 4 para. 31(2); S.I. 1999/2342, art. 2(4), Sch. 3 and is repealed (prosp.) by 1999 c. 8, ss. 65, 67, Sch. 5

F10 S. 97(6)(bb) inserted (1.4.2000 for E. and otherwiseprosp.) by 1999 c. 8, ss. 65, 67, Sch. 4 para. 31(2); S.I. 1999/2342, art. 2(4), Sch. 3

F11 S. 97(7) omitted (1.9.1999 for E. and 1.12.1999 for W.) by virtue of 1999 c. 8, s. 65, Sch. 4 para. 31(3); S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 1999/3184, art. 2(2), Sch. 2 and is repealed (prosp.) by 1999 c. 8, ss. 65, 67, Sch. 5

F12 Words in s. 97(9) inserted (1.4.2000 for E. and otherwiseprosp.) by 1999 c. 8, ss. 65, 67, Sch. 4 para. 31(4); S.I. 1999/2342, art. 2(4), Sch. 3

Modifications etc. (not altering text)

C1 S. 97 modified (E.) (with effect in relation to the period beginning with 1.4.2002 and ending with 30.9.2002) by The National Health Service Reform and Health Care Professions Act 2002 (Commencement No. 2) Order 2002 (S.I. 2002/2478), art. 4

Marginal Citations

M1 1990 c. 19.