For the definition of hospital currently effective for the purposes of paragraph 8 (hospital patients) of Schedule 1 to the Local Government Finance Act 19882 there is substituted the following definition–

• ““Hospital” means–

  1. (a)

     a health service hospital within the meaning of the National Health Service Act 1977; and

  2. (b)

     a military, air-force or naval unit or establishment in England and Wales at or in which medical or surgical treatment is provided for persons subject–

     1. (i)

        by virtue of section 205 of the Army Act 1955, to military law;

     2. (ii)

        by virtue of section 205 of the Air Force Act 1955, to air-force law; or

     3. (iii)

        by virtue of section 111 of the Naval Discipline Act 1957, to that Act.”3