(1)The Secretary of State shall pay to each Health Board sums equal to their general Part II expenditure.
(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 (e) of subsection (4).
(3)The Secretary of State shall pay to each Health Board [F2and to HIS], in respect of each financial year, sums not exceeding the amount allotted for that year by the Secretary of State to the Board [F3or, as the case may be, HIS] towards meeting their main expenditure.
(4) In subsection (3) “ main expenditure ” means expenditure which is attributable to—
(a)the performance by the Board of their functions [F4or, as the case may be, by HIS of its health service functions,] in that year, but—
(i)is not general Part II expenditure; and
(ii)does not fall within paragraphs (b) [F5or (c)];
(b)the reimbursement of expenses of persons providing services in pursuance of Part II which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services);
(c)remuneration which is paid to persons providing additional pharmaceutical services (in accordance with directions under section 27A) in respect of such of those services as are designated;
(d)F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e)remuneration which is referable to the cost of drugs for which the Health Board is accountable in that year (whether paid by it or by another Health Board).
(5) In paragraphs (b) to (e) of subsection (4), “ designated ” means designated in writing by the Secretary of State for the purposes of that paragraph and in relation to the allotment in question.
(6)An amount is allotted to a Health Board [F7or to HIS] 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.
(7)Where the Secretary of State proposes to pay any sum to a Health Board, he may, with the consent of the Treasury, instead pay that sum to an NHS trust in discharge of the whole or any part of any liability of the Health Board to the NHS trust.
(8)The Secretary of State may give directions to a Health Board [F8or to HIS] with respect to the application of sums paid to them and a Board to whom directions have been given under this subsection [F9and HIS, when directions are so given to it,] shall comply with the directions.
(9)The expenditure of a University Liaison Committee shall, for the purposes of this section, be deemed to be the expenditure of the Health Board for whose area it is constituted, and, where a University Liaison Committee is constituted for the areas of more than one Health Board, its expenditure shall be apportioned between the Boards concerned in such manner as may be determined by the Secretary of State.
(10)Payments under this section shall be made at such times and in such manner, and subject to such conditions as to records, certificates or otherwise, as the Secretary of State may determine.
(11) In this section and section 85AB, “ drugs ” includes medicines and listed appliances (within the meaning of section 27). ]
Textual Amendments
F1S. 85, 85AA, 85AB substituted for s. 85 (1.10.1999) by 1999 c. 8, s. 52; S.I. 1999/90, art. 2(a), Sch. 1
F2Words in s. 85AA(3) inserted (1.10.2010 for specified purposes, 1.4.2011 in so far as not already in force) by Public Services Reform (Scotland) Act 2010 (asp 8), s. 134(7), Sch. 17 para. 15(a)(i); S.S.I. 2010/321, art. 3, Sch.; S.S.I. 2011/122, art. 2, Sch.
F3Words in s. 85AA(3) inserted (1.10.2010 for specified purposes, 1.4.2011 in so far as not already in force) by Public Services Reform (Scotland) Act 2010 (asp 8), s. 134(7), Sch. 17 para. 15(a)(ii); S.S.I. 2010/321, art. 3, Sch.; S.S.I. 2011/122, art. 2, Sch.
F4Words in s. 85AA(4)(a) inserted (1.10.2010 for specified purposes, 1.4.2011 in so far as not already in force) by Public Services Reform (Scotland) Act 2010 (asp 8), s. 134(7), Sch. 17 para. 15(b); S.S.I. 2010/321, art. 3, Sch.; S.S.I. 2011/122, art. 2, Sch.
F5Words in s. 85AA(4)(a)(ii) substituted (1.4.2004) by Primary Medical Services (Scotland) Act 2004 (asp 1), ss. 8, 9(1), {Sch. para. 1(16)(a); S.S.I. 2004/58, art. 2(3)}
F6S. 85AA(4)(d) repealed (1.4.2004) by Primary Medical Services (Scotland) Act 2004 (asp 1), ss. 8, 9(1), {Sch. para. 1(16)(b); S.S.I. 2004/58, art. 2(3)}
F7Words in s. 85AA(6) inserted (1.10.2010 for specified purposes, 1.4.2011 in so far as not already in force) by Public Services Reform (Scotland) Act 2010 (asp 8), s. 134(7), Sch. 17 para. 15(c); S.S.I. 2010/321, art. 3, Sch.; S.S.I. 2011/122, art. 2, Sch.
F8Words in s. 85AA(8) inserted (1.10.2010 for specified purposes, 1.4.2011 in so far as not already in force) by Public Services Reform (Scotland) Act 2010 (asp 8), s. 134(7), Sch. 17 para. 15(d)(i); S.S.I. 2010/321, art. 3, Sch.; S.S.I. 2011/122, art. 2, Sch.
F9Words in s. 85AA(8) inserted (1.10.2010 for specified purposes, 1.4.2011 in so far as not already in force) by Public Services Reform (Scotland) Act 2010 (asp 8), s. 134(7), Sch. 17 para. 15(d)(ii); S.S.I. 2010/321, art. 3, Sch.; S.S.I. 2011/122, art. 2, Sch.
Modifications etc. (not altering text)
C1S. 85AA applied (1.4.2000) by S.S.I. 2000/47, art. 5(1)(2), Sch. Pt. I
S. 85AA applied (6.4.2001) by S.S.I. 2001/137, art. 5(1), Sch. Pt. I
S. 85AA applied (31.3.2002) by S.S.I. 2002/103, art. 6, Sch. Pt. I (with art. 4(4))
S.85AA applied (27.6.2002) by S.S.I. 2002/305, art. 5(1), Sch. Pt. I (with art. 4(4))
C2S. 85AA applied (1.4.2003) by S.I. 1990/2639, art. 5(1), Sch. Pt. 1 (as amended by The Health Education Board for Scotland Amendment Order 2003 (S.S.I. 2003/154), art. 6(c))
C3S. 85AA applied (7.12.2019) by The Public Health Scotland Order 2019 (S.S.I. 2019/336), art. 1(2), sch. 1 Pt. 1 (with art. 4(4)(5))