pounds 260m private hospital deal slated

COLIN BROWN

Chief political correspondent

Labour last night criticised the Government for giving Treasury approval to private sector consortia to build two NHS hospitals at a total cost pounds 260m. The two deals were seen by ministers as ground-breaking investment in public service capital projects by private companies, which may release millions of pounds for NHS hospitals in the future.

But Labour warned it could be the "thin end of the wedge" for private enterprise in the health service, a charge denied by Health ministers. The consortiums will own the buildings at the end of the contracts, but NHS trusts may lease them.

The hospitals will be privately built, but run by the NHS for NHS patients. There will be private patients units and the private companies will provide support services, including cleaning and maintenance.

Harriet Harman, Labour's health spokeswoman, said: "These are major departures for the NHS. We think they are using the private finance initiative to drive the private sector into the NHS."

The contracts are for the pounds 170m Norfolk and Norwich hospital, providing 700 beds, to replace two hospitals in Norwich, by a consortium involving John Laing Construction; and a pounds 90m rebuilding project for 520 beds at the Princess Margaret Hospital , Swindon, by a consortium led by Tarmac with United Medical Enterprises.

The contracts for the hospitals have yet to be signed, and Whitehall officials denied the consortia were waiting for the passage of a Bill being rushed through Parliament to give the Health Secretary, Stephen Dorrell, power to take over debts from hospital trusts.

The Bill was needed because some private sector companies had been anxious to ensure that the Government would take on the debts, in the unlikely event that any NHS trusts went bankrupt, or were wound up.

If Labour win the next election, they will be bound by the contracts and will have to face running the NHS with privately-financed hospitals.

Ms Harman said the contracts were "shrouded in secrecy" and needed to be opened to public accountability. The Norfolk and Norwich contract will run for 60 years: at the end of the term, the NHS trust has the option of taking the hospital into its ownership. The NHS Trust will employ the staff and there can be no change to the facilities without specific agreement of the Trust.

At the Swindon hospital, the contract will run for 25 years with an option to extend it for 15 years. After construction, the consortium, the Hospital Company, will own the buildings and lease them to the Trust.

pounds 14bn target, page 22

Voices
Mosul dam was retaken with the help of the US
voicesRobert Fisk: Barack Obama is following the jihadists’ script
Arts and Entertainment
Loaded weapon: drugs have surprise side effects for Scarlett Johansson in Luc Besson’s ‘Lucy’
filmReview: Lucy, Luc Besson's complex thriller
News
peoplePamela Anderson rejects ice bucket challenge because of ALS experiments on animals
Arts and Entertainment
tvExecutive says content is not 'without any purpose'
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Life and Style
techCould new invention save millions in healthcare bills?
News
A cleaner prepares the red carpet for the opening night during the 59th International Cannes Film Festival May 17, 2006 in Cannes, France.
newsPowerful vacuum cleaners to be banned under EU regulations
Sport
sportLeague Managers' Association had described Malky Mackay texts as 'friendly banter'
News
A polar bear’s diet is rich in seal blubber and half of its own body weight is composed of fat
i100
News
peopleCareer spanned 70 years, including work with Holocaust survivors
News
people
Travel
Flocking round: Beyoncé, Madame Tussauds' latest waxwork, looking fierce in the park
travelIn a digital age when we have more access than ever to the stars, why are waxworks still pulling in crowds?
News
London is the most expensive city in Europe for cultural activities such as ballet
arts
Arts and Entertainment
Jeremy Clarkson has rejected criticisms of his language, according to BBC director of television Danny Cohen
tv
Extras
indybest
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Head of IT (Not-for-Profit sector) - East Sussex

£45000 - £50000 per annum + 5 weeks holiday & benefits: Ashdown Group: Head of...

Nursery Nurse

£25 per day: Randstad Education Manchester: Level 3 Nursery nurse needed in th...

Supply Teaching jobs in Thetford

£21588 - £31566 per annum: Randstad Education Cambridge: Randstad Education ar...

KS1 teachers needed in Peterborough

£110 - £125 per annum: Randstad Education Cambridge: Randstad Education are ur...

Day In a Page

Air strikes? Talk of God? Obama is following the jihadists’ script

Air strikes? Talk of God? Obama is following the jihadists’ script

The President came the nearest he has come yet to rivalling George W Bush’s gormless reaction to 9/11 , says Robert Fisk
Ebola outbreak: Billy Graham’s son declares righteous war on the virus

Billy Graham’s son declares righteous war on Ebola

A Christian charity’s efforts to save missionaries trapped in Africa by the crisis have been justifiably praised. But doubts remain about its evangelical motives
Jeremy Clarkson 'does not see a problem' with his racist language on Top Gear, says BBC

Not even Jeremy Clarkson is bigger than the BBC, says TV boss

Corporation’s head of television confirms ‘Top Gear’ host was warned about racist language
Nick Clegg the movie: Channel 4 to air Coalition drama showing Lib Dem leader's rise

Nick Clegg the movie

Channel 4 to air Coalition drama showing Lib Dem leader's rise
Philip Larkin: Misogynist, racist, miserable? Or caring, playful man who lived for others?

Philip Larkin: What will survive of him?

Larkin's reputation has taken a knocking. But a new book by James Booth argues that the poet was affectionate, witty, entertaining and kind, as hitherto unseen letters, sketches and 'selfies' reveal
Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?

Waxing lyrical

Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?
Texas forensic astronomer finally pinpoints the exact birth of impressionism

Revealed (to the minute)

The precise time when impressionism was born
From slow-roasted to sugar-cured: how to make the most of the British tomato season

Make the most of British tomatoes

The British crop is at its tastiest and most abundant. Sudi Pigott shares her favourite recipes
10 best men's skincare products

Face it: 10 best men's skincare products

Oscar Quine cleanses, tones and moisturises to find skin-savers blokes will be proud to display on the bathroom shelf
Malky Mackay allegations: Malky Mackay, Iain Moody and another grim day for English football

Mackay, Moody and another grim day for English football

The latest shocking claims do nothing to dispel the image that some in the game on these shores exist in a time warp, laments Sam Wallace
La Liga analysis: Will Barcelona's hopes go out of the window?

Will Barcelona's hopes go out of the window?

Pete Jenson starts his preview of the Spanish season, which begins on Saturday, by explaining how Fifa’s transfer ban will affect the Catalans
Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape