Westminster Funding results in NHS Tayside debt write-off
Under-fire health board, NHS Tayside, is set to have its long-term debts cancelled by the Scottish Government thanks to additional funding for NHS Scotland through the Barnett Formula.
The UK Conservative Government has announced a significant financial boost for health boards south of the border and as part of current arrangements, NHS Scotland will receive a per capita share of any increase in funding.
As a result, Jeane Freeman, the Scottish Government’s Health Secretary announced a new three year budget process for territorial boards and confirmed that the Government would not seek to recover outstanding loans to NHS boards, like Tayside.
In recent years, NHS Tayside has received brokerage loans worth up to £45m and these are now set to be annulled.
Commenting Murdo Fraser MSP said;
“This is hugely welcome news that would not be possible without the UK Conservative Government and Barnett Formula funding.
“Under current arrangements, which the SNP want to scrap, public services north of the border receive a per capita share of any funding boost that public services in England and Wales receive.
“This significant funding boost is now being used by the Scottish Government to write-off outstanding debts owed by NHS Tayside.
“Ultimately, I would hope today’s announcement gives NHS Tayside security to plan for the future whilst helping create policies that are not only good for the balance sheet but also good for patients.
“Repaying brokerage loans has cast a black shadow over the health board and thanks to the UK Conservative Government this has now been lifted.”