National Health Service Act 1977

[F1 97A Financial duties of Health Authorities and Special Health Authorities. E+W+S

(1) It is the duty of [F2 every Strategic Health Authority and of] every Health Authority, in respect of each financial year, to perform their functions so as to secure that the expenditure of [F3 the Authority] which is attributable to the performance by them of their functions in that year (not including expenditure within subsection (1) of section 97 above) does not exceed the aggregate of—

(a) the [F4 amount allotted to them for that year under subsection [F5 (A1) or](3)] of that section;

(b) any sums received by them in that year under any provision of this Act (other than sums received by them under that section); and

(c) any sums received by them in that year otherwise than under this Act for the purpose of enabling them to defray any such expenditure.

(2) It is the duty of every Special Health Authority, in respect of each financial year, to perform their functions so as to secure that the expenditure of the Special Health Authority which is attributable to the performance by them of their functions in that year does not exceed the aggregate of—

(a) the amount allotted to them for that year under subsection (4) of section 97 above;

(b) any sums received by them in that year under any provision of this Act (other than sums received by them under that subsection); and

(c) any sums received by them in that year otherwise than under this Act for the purpose of enabling them to defray any such expenditure.

(3) The Secretary of State may give such directions to a [F6 Strategic Health Authority,] Health Authority or Special Health Authority as appear to be requisite to secure that the [F6 Strategic Health Authority,] Health Authority or Special Health Authority comply with the duty imposed on them by subsection (1) or (2) above.

(4) Directions under subsection (3) above may be specific in character.

F7 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) To the extent to which—

(a) any expenditure is defrayed by a [F8 Strategic Health Authority,] Health Authority or Special Health Authority as trustee or on behalf of a [F8 Strategic Health Authority,] Health Authority or Special Health Authority by special trustees; or

(b) any sums are received by a [F8 Strategic Health Authority,] Health Authority or Special Health Authority as trustee or under section 96A above,

that expenditure and, subject to subsection (8) below, those sums shall be disregarded for the purposes of this section.

(7) For the purposes of this section sums which, in the hands of a [F8 Strategic Health Authority,] Health Authority or Special Health Authority, cease to be trust funds and become applicable by the [F8 Strategic Health Authority,] Health Authority or Special Health Authority otherwise than as trustee shall be treated, on their becoming so applicable, as having been received by the [F8 Strategic Health Authority,] Health Authority or Special Health Authority otherwise than as trustee.

(8) Of the sums received by a [F8 Strategic Health Authority,] Health Authority or Special Health Authority under section 96A above so much only as accrues to the [F8 Strategic Health Authority,] Health Authority or Special Health Authority after defraying any expenses incurred in obtaining them shall be disregarded under subsection (6) above.

(9) Subject to subsection (6) above, the Secretary of State may by directions determine—

(a) whether sums of a description specified in the directions are, or are not, to be treated for the purposes of this section as received under this Act by a [F9 Strategic Health Authority,] Health Authority or Special Health Authority of a description specified in the directions;

(b) whether expenditure of a description specified in the directions is, or is not, to be treated for those purposes as—

(i) expenditure within subsection (1) above of a [F10 Strategic Health Authority or] Health Authority of a description so specified; or

(ii) expenditure within subsection (2) above of a Special Health Authority of a description so specified; or

(c) the extent to which, and the circumstances in which, sums received—

(i) by a [F11 Strategic Health Authority or] Health Authority under F12 . . . section 97 above; or

(ii) by a Special Health Authority under subsection (4) of that section,

but not yet spent are to be treated for the purposes of this section as part of the expenditure of the [F9 Strategic Health Authority,] Health Authority or Special Health Authority and to which financial year’s expenditure they are to be attributed.]

Textual Amendments

F1 S. 97A 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. 48 (with Sch. 2 para. 6)

F2 Words in s. 97A(1) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(2)(a); S.I. 2002/2478, {art. 3(1)((e)}

F3 Words in s. 97A(1) substituted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(2)(b); S.I. 2002/2478, {art. 3(1)((e)} (and that amending provision, Sch. 8 para. 4(2)(b), purportedly brought into force at 10.10.2002 for W. by S.I. 2002/2532, art 2 Sch.)

F4 Words in s. 97A substituted (1.4.1998) by 1997 c. 46, s. 41(10), Sch. 2 Pt. I para. 23(a); S.I. 1998/631, art. 2(b), Sch. 2 (with arts. 3-5)

F5 Words in s. 97A(1)(a) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(2)(c); S.I. 2002/2478, {art. 3(1)((e)} (and that amending provision, Sch. 8 para. 4(2)(c), purportedly brought into force at 10.10.2002 for W. by S.I. 2002/2532, art 2 Sch.)

F6 Words in s. 97A(3) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(3); S.I. 2002/2478, {art. 3(1)((e)}

F7 S. 97A(5) omitted (1.9.1999 for E. and 1.12.1999 for W.) by virtue of 1999 c. 8, s. 65, Sch. 4 para. 32; S.I. 1999/2342, art. 2(1), Sch. 1; S.I. 1999/3184, art. 2(2), Sch. 2 and is repealed (1.4.2000) by 1999 c. 8, s. 65, Sch. 5; S.I. 2000/1041, art. 2(d), Sch.

F8 Words in s. 97A(6)(7)(8) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(3); S.I. 2002/2478, {art. 3(1)((e)}

F9 Words in s. 97A(9) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(4)(a); S.I. 2002/2478, {art. 3(1)((e)}

F10 Words in s. 97A(9)(b)(i) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(4)(b); S.I. 2002/2478, {art. 3(1)((e)}

F11 Words in s. 97A(9)(c)(i) inserted (1.10.2002) by National Health Service Reform and Health Care Professions Act 2002 (c. 17), ss. 37(1), 42(3), Sch. 8 para. 4(4)(b); S.I. 2002/2478, {art. 3(1)((e)}

F12 Words in s. 97A(9)(c)(i) repealed (1.4.1998) by 1997 c. 46, s. 41(10)(12), Sch. 2 Pt. I para. 23(b), Sch. 3 Pt. I; S.I. 1998/631, art. 2(b), Sch. 2, Sch. 3 Pt. I (with arts. 3-5)