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| Version 1 | Version 2 |
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| Credit warning for new hospitals | Credit warning for new hospitals |
| (10 minutes later) | |
| The NHS hospital building programme in England could be badly disrupted by the recession, a health service memo seen by the BBC suggests. | The NHS hospital building programme in England could be badly disrupted by the recession, a health service memo seen by the BBC suggests. |
| A document leaked to the Conservatives raises concerns over projects funded through private finance initiatives. | A document leaked to the Conservatives raises concerns over projects funded through private finance initiatives. |
| In a meeting with Health Secretary Alan Johnson, senior NHS managers were told there is no "plan B" for when the banks cannot provide capital, the memo says. | In a meeting with Health Secretary Alan Johnson, senior NHS managers were told there is no "plan B" for when the banks cannot provide capital, the memo says. |
| But a government source said work was going ahead as planned. | But a government source said work was going ahead as planned. |
| The document summarises discussions on the impact of the credit crunch on the NHS in a meeting between Mr Johnson and Strategic Health Authority bosses which took place earlier this month. | The document summarises discussions on the impact of the credit crunch on the NHS in a meeting between Mr Johnson and Strategic Health Authority bosses which took place earlier this month. |
| There are liquidity and lending problems, which are particularly affecting people at the earlier stage Nigel Edwards, NHS Confederation | There are liquidity and lending problems, which are particularly affecting people at the earlier stage Nigel Edwards, NHS Confederation |
| It suggests the hospital building programme - funded by billions of pounds raised under PFI - is particularly vulnerable. | It suggests the hospital building programme - funded by billions of pounds raised under PFI - is particularly vulnerable. |
| According to the memo, PFI schemes were always plan A, and that now none of the banks have any money the absence of a plan B is going to cause a real problem. | According to the memo, PFI schemes were always plan A, and that now none of the banks have any money the absence of a plan B is going to cause a real problem. |
| It also predicts that NHS funds will be hit hard by the credit crunch and that 2010/11 "is going to get really tight". | It also predicts that NHS funds will be hit hard by the credit crunch and that 2010/11 "is going to get really tight". |
| Private sector | Private sector |
| The government has had a 10-year programme to build new hospitals, the vast majority of which have been funded through PFI. | The government has had a 10-year programme to build new hospitals, the vast majority of which have been funded through PFI. |
| Under the agreements, the private sector designs, builds and finances, while the NHS repays the costs plus interest over the following decades. | Under the agreements, the private sector designs, builds and finances, while the NHS repays the costs plus interest over the following decades. |
| It has been suggested that the NHS could end up paying back more than £50bn over the next 30 years for hospitals worth a fifth of that amount. | It has been suggested that the NHS could end up paying back more than £50bn over the next 30 years for hospitals worth a fifth of that amount. |
| The Tories say a lot of hospital schemes are now at risk. | The Tories say a lot of hospital schemes are now at risk. |
| Shadow health secretary Andrew Lansley said the credit crunch means that many new hospitals - meant to be built through PFI - will not be able to raise the necessary cash from the private sector. | Shadow health secretary Andrew Lansley said the credit crunch means that many new hospitals - meant to be built through PFI - will not be able to raise the necessary cash from the private sector. |
| "Even worse, Gordon Brown's cuts to funds for new NHS buildings means that there is no extra money if local health boards are unable to raise funds through PFI." | "Even worse, Gordon Brown's cuts to funds for new NHS buildings means that there is no extra money if local health boards are unable to raise funds through PFI." |
| Chris Ham, professor of health policy and management at the University of Birmingham, agreed there will be difficulties ahead, particularly for hospitals which have not yet signed contracts. | |
| "There'll be lots of uncertainty about whether they'll be able to raise the money to allow those schemes to go ahead," he said. | |
| But the Department of Health said it was absolutely not the case that the recession is putting the brakes on the PFI programme. | |
| A source said there are 25 big schemes under construction and they were going to be important in terms of keeping the economy going. | A source said there are 25 big schemes under construction and they were going to be important in terms of keeping the economy going. |
| "There's no question of a go slow in the hospital building programme." | "There's no question of a go slow in the hospital building programme." |
| Nigel Edwards, director of policy at the NHS Confederation, agreed that the recession had brought problems to PFI schemes. | Nigel Edwards, director of policy at the NHS Confederation, agreed that the recession had brought problems to PFI schemes. |
| "There are liquidity and lending problems, which are particularly affecting people at the earlier stage," he said. | "There are liquidity and lending problems, which are particularly affecting people at the earlier stage," he said. |