Date lodged: 2 October 2017
To ask the Scottish Government whether NHS Lothian receives less funding than it should expect under the NRAC allocation formula and, if so, for what reason.
Answered by: Shona Robison 25 October 2017
As part of the Scottish Government’s 2017-18 Budget, NHS Territorial Boards have received inflationary uplifts of £136 million (1.5%) and NRAC parity funding of £50 million. This delivers increased funding of 2.1% and takes all Boards to within 1% of NRAC parity.
Given year-to-year movements in the NRAC target allocations, it would not have been appropriate or possible to move NHS Lothian (or any other Board below parity) to absolute parity as this would require an equivalent reduction in funding for those Boards, such as NHS Greater Glasgow and Clyde, that are above parity. Given the potentially detrimental immediate impact that such a move would cause, this is not an option that the Scottish Government would pursue.
Since 2015-16 NHS Lothian has received additional funding of £40 million in order to accelerate funding parity in line with the NRAC formula. Any future NRAC parity funding will be directed to those Boards that are below parity. To support Boards in their planning assumptions, three year forecasts for NRAC shares are now published.