NHS: Debts:Written question - 183326

Q
(Central Suffolk and North Ipswich)
Asked on: 24 October 2018
Department of Health and Social Care
NHS: Debts
Commons
To ask the Secretary of State for Health and Social Care, what the annual NHS provider debts were for each NHS provider organisation in each financial year since 2009-10.
A
Answered by: Stephen Barclay
Answered on: 01 November 2018

The Department and entities within its accounting boundary report on the basis of European Union Adopted International Financial Reporting Standards as interpreted and adapted for the public sector by HM Treasury’s Financial Reporting Manual.

Debt is not a specific classification of liability that is reported by entities, including National Health Service trusts and NHS foundation trusts.

To provide a total liability amount for each provider organisation, either current and payable within 12 months or non-current and due to be settled beyond 12 months from the end of the financial year, would therefore include items which the Department would not expect to be viewed as debt.

For this reason, the Department has interpreted the term debt to refer to outstanding balances on loans both with the Department and with Other Entities. The attached tables identify the level of loans outstanding for each financial year from 2010-11 for which complete information is available, on a current and non-current basis.

Loans held with the Department are eliminated on consolidation to arrive at the Group’s Consolidated Statement of Financial Position. As part of presenting a consolidated set of accounts, all intra group activity (including income, expenditure, assets and liabilities generated by intra group trading) is eliminated, so as to not overstate the Group position. For individual NHS providers these loans with the Department represent a debt but this is not the case with the Group position presented in the Department’s Annual Report and Accounts as balances held and transactions related to the loans held are eliminated.

PQ183326 attached table (Word Document, 277.34 KB)

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