Legalize / United Kingdom / Public General Act

National Health Service (Scotland) Act 1978

Type Public General Act

Publication 1978-07-20

Last updated 2025-06-19

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

and for the purposes of this paragraph “ National Health Service body ” means a Health Board, the Agency or an NHS trust.

Supplementary provisions

10A

(1) An elected member holds office for a period beginning with the day after the day of the Health Board election at which the member was elected and ending on the day of the next following Health Board election in the Health Board area.

(2) An elected member vacates office on becoming—

(a) a member of the European Parliament,

(b) a member of the House of Commons,

(d) a member of the Scottish Parliament, or

(e) a local authority councillor.

(3) Regulations may specify further circumstances in which an elected member must vacate office before the end of that period and, in particular, may specify that an elected member is to vacate office on becoming the holder of a post set out in a list of restricted posts maintained by the Health Board concerned for that purpose.

11A

A Health Board may subscribe to the funds of any associations or other bodies having objects of which the Board approves.

SCHEDULE 1A

Health Board elections

1

An election held under this Schedule is known as a “Health Board election”.

Timing of Health Board elections

2

(1) A Health Board must hold the first Health Board election in the Health Board area on the day specified in election regulations.

(2) Election regulations may specify different days for the first election in different Health Board areas.

(3) A Health Board must hold subsequent Health Board elections on the first Thursday falling after the end of the period of 4 years beginning with the day of the previous election.

(4) But a Health Board election may be held in a Health Board area before the day specified in sub-paragraph (3) if the Scottish Ministers make an order under section 77 specifying the date of a Health Board election in that area.

Electoral wards

3

(1) Each Health Board area is to be comprised of a single electoral ward unless election regulations specify that a Health Board area is to be divided into more than one ward.

(2) If regulations specify such a division they must also specify—

(a) the number of electoral wards in the Health Board area,

(b) the boundaries of those wards, and

(3) Before regulations specifying such a division are made—

(a) the Scottish Ministers must consult the Local Government Boundary Commission for Scotland, and

(b) the Commission must give the Scottish Ministers advice about the boundaries of the electoral wards which the Health Board is to be divided into.

Conduct of election

4

(1) Election regulations must appoint an individual as the returning officer for each ward in which a Health Board election is to be held.

(2) Election regulations may make provision about—

(a) the tenure and vacation of office of a returning officer,

(b) the functions of a returning officer,

(d) any other matters relating to returning officers that the Scottish Ministers consider appropriate.

5

(1) The nomination of a candidate must be made—

(a) within the period specified in election regulations (the “nomination period”), and

(b) in accordance with any other requirement made in those regulations.

(2) A candidate may withdraw from a Health Board election at any time before the end of the nomination period.

6

If, at the end of the nomination period, the number of nominated candidates in an electoral ward is equal to or less than the number of elected members to be elected for that ward—

(a) the Health Board election is not to be held in the ward, and

(b) on the day on which the election was to be held the returning officer must—

(i) declare the nominated candidates (if any) to be deemed to have been elected as elected members for the ward, and

(ii) if the number of nominated candidates is less than the number of elected members to be elected for the ward, declare the number of vacancies in the ward.

7

(1) In any other case, the elected members are to be elected for the electoral ward at a poll held in accordance with this paragraph.

(2) At the poll, each individual entitled to vote may vote by marking on the ballot paper—

(a) the voter's first preference from among the candidates, and

(b) if the voter wishes to express a further preference for one or more candidates, the voter's second and, if the voter wishes, subsequent preferences from among those candidates.

(3) Election regulations must, in particular, make provision about—

(a) the manner in which and period during which votes may be cast,

(b) the form and content of ballot papers,

(c) the manner in which the number of votes which will secure the return of a candidate as an elected member is to be calculated,

(d) the procedure for counting votes,

(e) the declaration of the result of the poll.

Candidates

8

(1) An individual is disqualified from being a candidate in a Health Board election if the individual is—

(a) a member of the European Parliament,

(b) a member of the House of Commons,

(d) a member of the Scottish Parliament, or

(e) a local authority councillor.

(2) Election regulations may make further provision about—

(a) who is qualified to be a candidate in a Health Board election, and

(b) the circumstances in which an individual may be disqualified from being a candidate,

and, in particular, may disqualify from being a candidate an individual holding a post set out in a list of restricted posts maintained by the Health Board concerned for that purpose.

Franchise

9

(1) An individual is entitled to vote at a Health Board election if the individual—

(a) is aged 16 or over, and

(b) meets any further criteria specified in election regulations.

(2) Such further criteria may, in particular, provide that an individual is entitled to vote at a Health Board election only if the individual—

(a) is registered in the register of local government electors in respect of an address in the Health Board area, and

(b) would be entitled to vote at a local government election in an electoral area falling wholly or partly in the Health Board area (or would be so entitled if aged 18 or over).

(3) Election regulations may determine, or set out the criteria for determining, the electoral ward in which an individual is entitled to vote.

(4) Election regulations may not entitle an individual to vote—

(a) more than once in the same Health Board area, nor

(b) in more than one Health Board area.

Election expenses

10

Election regulations may make provision about the expenses which may be incurred by any person in connection with a Health Board election.

Vacancies

11

(1) This paragraph applies if—

(a) a returning officer declares a vacancy in an electoral ward (see paragraph 6), or

(b) an elected member vacates office before the end of the period mentioned in paragraph 10A(1) of Schedule 1.

(2) The Scottish Ministers may—

(a) direct the Health Board with the vacancy to invite an unelected candidate to fill the vacancy, or

(b) appoint, in accordance with any provision made by election regulations, an individual to fill the vacancy.

(3) If a vacancy arises less than 6 months before the date of the next Health Board election in the Health Board area where it arises, the Scottish Ministers may, instead of taking action under sub-paragraph (2), direct the Health Board to leave the vacancy unfilled until that next election.

(4) An individual who fills a vacancy is to be deemed to be an elected member of the Health Board elected for the ward in which the vacancy occurred.

(5) In sub-paragraph (2)(a), an “unelected candidate” is an individual who—

(a) was a nominated candidate in the last Health Board election to be held in the Health Board area, and

(b) is identified by criteria specified in election regulations.

Election regulations

12

(1) The Scottish Ministers may make regulations (“election regulations”) in relation to any matter specified in this Schedule as something in relation to which provision may be made by election regulations.

(2) Election regulations may make further provision about Health Board elections (in so far as not already provided for in this Schedule).

(3) In particular, election regulations may provide that an enactment applies (with or without modifications specified in the regulations) or does not apply to Health Board elections.

(4) In sub-paragraph (3), “enactment” includes an Act of the Scottish Parliament and any instrument made under such an Act.

The University Liaison Committee for any area or combination of areas shall consist of such number of members as the Secretary of State thinks fit; and of those members—

The Committee shall appoint one of their number to be chairman.

3A

The Secretary of State may pay to the chairman of the management committee and to such other members of the management committee as may be prescribed such remuneration as he may, with the approval of the Minister for the Civil Service, from time to time determine.

7A

Regulations or directions under paragraph 7 may provide for approvals, authorisations or determinations to have effect from a date (which may be before or after the date of giving or making them but may not be before if to the detriment of such officers and servants) specified in them.

7B

Regulations may provide for the transfer of officers and servants from the Agency to a Health Board or state hospital, and for arrangements under which the services of an officer or servant of the Agency are placed at the disposal of a Health Board or state hospital.

7C

Directions may be given by the Secretary of State—

(a) to the Agency to place services of any of its officers or servants at the disposal of a Health Board or state hospital; and

(b) to a Health Board or state hospital to employ as an officer or servant any person who is or was employed by the Agency and is specified in the direction,

and it shall be the duty of the Agency, a Health Board or a state hospital to comply with any such directions given to it.

8A

In connection with arrangements relating to community care services ..., regulations may make provision with respect to—

(a) the transfer to employment by a local authority of officers or servants employed by the Agency; and

(b) the transfer to employment by a National Health Service body of officers and servants transferred to employment by a local authority by virtue of this paragraph.

and for the purposes of this paragraph “ National Health Service body ” means the Agency, a Health Board or an NHS trust.

8B

Before making regulations under paragraph 7B or 8A, the Secretary of State shall consult such bodies and organisations as appear to him to be concerned.

SCHEDULE 5A

Status

1

(1) Healthcare Improvement Scotland is a body corporate.

(2) HIS is not to be regarded as a servant or agent of the Crown, or as having any status, immunity or privilege of the Crown, nor are its members or its employees to be regarded as civil servants.

(3) HIS's property is not to be regarded as property of, or held on behalf of, the Crown.

Membership of HIS

2

(1) HIS is to consist of the following members—

(a) a person appointed by the Scottish Ministers to chair HIS;

(b) the person appointed under paragraph 2(1)(a) of schedule 11 to the Public Services Reform (Scotland) Act 2010 (asp 8) to chair Social Care and Social Work Improvement Scotland; and

(2) The Scottish Ministers may by order amend sub-paragraph (1)(c) by substituting for the minimum or maximum number of members for the time being specified there such other number as they think fit.

(3) In appointing members, the Scottish Ministers are to have regard to the desirability of including—

(a) persons who have experience of, and have shown capacity and capability in, the provision of services provided under the health service or independent health care services;

(b) persons who use, or have used services provided under the health service or independent health care services;

(c) persons who have such other skills, knowledge or experience as the Scottish Ministers consider to be relevant in relation to the exercise of HIS's functions.

Terms of appointment etc.

3

(1) Each member of HIS is to be appointed for such period as the Scottish Ministers think fit.

(2) A member—

(a) holds and vacates office in accordance with the terms and conditions of appointment; but

(b) may, by written notice to the Scottish Ministers, resign office as a member.

(3) A person is, on ceasing to be a member, eligible for reappointment.

Removal of members

4

The Scottish Ministers may, by written notice, remove a member from office if they are satisfied that—

(a) the member—

(i) has been adjudged bankrupt;

(ii) has granted a trust deed for creditors or a composition contract;

(iii) has proposed a voluntary arrangement which has been approved;

(b) the member's estate has been sequestrated;

(d) the member is otherwise unfit or unable to discharge the functions of a member.

Disqualification from membership

5

A person is disqualified from appointment, and from holding office, as a member of HIS if that person is—

(a) a member of the Scottish Parliament;

(b) a member of the House of Commons;

Remuneration and allowances for members

6

HIS must pay to each of its members such—

(a) remuneration; and

(b) allowances and expenses,

as the Scottish Ministers may determine.

Chief executive and other employees

7

(1) HIS is to employ a chief executive.

(2) The chief executive must be a member of HIS.

(3) The Scottish Ministers are to make the first appointment of the chief executive on such terms and conditions as the Scottish Ministers may determine.

(4) Each subsequent chief executive is, with the approval of the Scottish Ministers, to be appointed by HIS on such terms and conditions as HIS may, with such approval, determine.

(5) HIS may (subject to any directions given under sub-paragraph (6)) appoint such other employees on such terms and conditions as HIS may determine.

(6) The Scottish Ministers may give directions to HIS as regards—

(a) the appointment of employees under sub-paragraph (5); and

(b) the terms and conditions of their employment.

(7) HIS may, with the approval of the Scottish Ministers—

(a) pay or make arrangements for the payment;

(b) make payments or contributions towards the provision;

of such pensions, allowances or gratuities to or in respect of any person who is or has ceased to be an employee of HIS, as it may determine.

(8) The reference in sub-paragraph (7) to pensions, allowances and gratuities includes a reference to pensions, allowances and gratuities by way of compensation for loss of employment.

Committees

8

(1) HIS may establish committees for any purpose relating to its functions.

(2) Subject to section 10Z16, HIS is to determine the composition of its committees.

(3) HIS may appoint persons who are not members of HIS to be members of a committee.

(4) A committee of HIS is to comply with any directions given to it by HIS.

Procedure and meetings

9

(1) HIS may determine its own procedure and that of its committees, including a quorum for meetings.

(2) The validity of any proceedings of HIS, or any of its committees, is not affected by a vacancy in membership nor by any defect in the appointment of a member.

(3) Members of—

(a) the Scottish Executive and persons authorised by the Scottish Ministers;

(b) Social Care and Social Work Improvement Scotland and persons authorised by it,

may attend and take part in meetings of HIS or any of its committees, but are not entitled to vote at such meetings.

General powers

10

(1) HIS may do anything which appears to be necessary or expedient for the purpose of, or in connection with, or which appears conducive to, the exercise of its functions.

(2) In particular, HIS may—

(a) enter into contracts;

(b) with the consent of the Scottish Ministers—

(i) borrow money;

(ii) acquire and dispose of land;

(iii) borrow sums in sterling by way of overdraft for the purpose of meeting a temporary excess of expenditure over sums otherwise available to meet that expenditure.

Delegation of functions

11

(1) HIS may, subject to sub-paragraphs (2) to (3) authorise—

(a) the chief executive;

(b) any other employee;

to exercise such of its functions, and to such extent, as it may determine.

(2) HIS may not authorise any of the following functions to be exercised by any other person—

(a) the approval of annual reports and accounts;

(b) the approval of any budget or other financial plan.

(2A) HIS may authorise an employee to carry out the functions of a medical reviewer under section 17.

(2B) Any other function conferred on a medical reviewer or the senior medical reviewer may not, subject to sub-paragraph (2C), be delegated by HIS.

(2C) The senior medical reviewer may, with the approval of HIS, make arrangements for the functions of the senior medical reviewer to be carried out by a medical reviewer where the senior medical reviewer is absent or otherwise unavailable.

(3) Sub-paragraph (1) does not affect the responsibility of HIS for the exercise of its functions.

Location of office

12

HIS's determination of the location of its office premises is subject to the approval of the Scottish Ministers.

Accounts

13

(1) HIS must—

(a) keep proper accounts and accounting records;

(b) prepare in respect of each financial year a statement of accounts; and

and must do so in accordance with any directions the Scottish Ministers may give.

(2) HIS must send the statement of accounts to the Auditor General for Scotland for auditing.

Reports

14

(1) As soon as practicable after the end of each financial year, HIS must prepare a report which is—

(a) to provide information on the discharge of HIS's functions during that year; and

(b) to include a copy of the statement of accounts for that year audited by the Auditor General for Scotland.

(2) HIS must—

(a) publish the report;

(b) lay a copy of the report before the Scottish Parliament;

(3) HIS may publish such other reports and information on matters relevant to the functions of HIS as it considers appropriate.

Constitution

Powers

SCHEDULE 7A

Part I — Orders Establishing NHS Trusts Etc.

1

Any reference in this Part of this Schedule to an order is a reference to an order under section 12A(1) establishing an NHS trust or any subsequent order under that provision amending or revoking a previous order.

2

The provisions made by an order shall be in conformity with any general provision made by regulations under section 12A(5).

3

(1) Without prejudice to any amendment made by subsequent order, the first order to be made in relation to any NHS trust shall specify—

(a) the name of the trust;

(b) the functions of the trust;

(d) where the trust is to be regarded as having a significant teaching commitment, a provision to secure the inclusion in the trustees referred to in paragraph (c) of a person appointed from a university with a medical or dental school specified in the order;

(e) the operational date of the trust, that is to say, the date on which the trust is to begin to undertake the whole of the functions conferred on it; and

(f) if a scheme is to be made under section 12B, the body (being a Health Board or the Agency) which is to make the scheme.

(2) For the purposes of sub-paragraph (1)(d), an NHS trust is to be regarded as having a significant teaching commitment in the following cases—

(a) if the trust is established to provide services at a hospital or other establishment or facility which, in the opinion of the Secretary of State, has a significant teaching and research commitment; and

(b) in any other case, if the Secretary of State so provides in the order.

(a) is employed by the university in question; and

(b) would also, apart from this sub-paragraph, be regarded as employed by the trust,

his employment by the trust shall be disregarded in determining whether, if appointed, he will be a trustee of the trust.

(4) An order shall specify the accounting date of the trust.

4

(1) An order may require a Health Board and the Agency to make staff, premises and other facilities available to an NHS trust pending the transfer or appointment of staff to or by the trust and the transfer of premises or other facilities to the trust.

(2) An order making provision under this paragraph may make provision with respect to the time when the Health Board’s functions under the provision are to come to an end.

5

(1) An order may provide for the establishment of an NHS trust with effect from a date earlier than the operational date of the trust and, during the period between that earlier date and the operational date, the trust shall have such limited functions for the purposes of enabling it to begin to operate satisfactorily with effect from the operational date as may be specified in the order.

(2) If an order makes the provision referred to in sub-paragraph (1), then, at any time during the period referred to in that sub-paragraph, the NHS trust shall be regarded as properly constituted (and may carry out its limited functions accordingly) notwithstanding that, at that time, all or any of the executive officers have not yet been appointed.

(3) If an order makes the provisions referred to in sub-paragraph (1) above, the order may require a Health Board to discharge such liabilities of the NHS trust as—

(a) may be incurred during the period referred to in that sub-paragraph; and

(b) are of a description specified in the order.

Part II — Duties, Powers and Status of NHS Trusts

Specific duties

6

(1) In carrying out the functions for the time being conferred on it an NHS trust shall comply with any directions given to it by the Secretary of State, whether of a general or of a particular nature.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

(1) For each accounting year an NHS trust shall prepare and send to the Secretary of State an annual report in such form as may be determined by the Secretary of State.

(2) At such time or times as may be prescribed, an NHS trust shall hold a public meeting at which its audited accounts, its annual report, and such other documents as may be prescribed shall be presented.

(3) In such circumstances and at such time or times as may be prescribed, an NHS trust shall hold a public meeting at which such documents as may be prescribed shall be presented.

8

An NHS trust shall furnish to the Secretary of State such reports, returns and other information, including information as to its forward planning as, and in such form as, he may require.

9

(1) An NHS trust shall be liable to pay—

(a) to the chairman and any trustee of the trust—

(i) remuneration of an amount determined by the Secretary of State, not exceeding such amount as may be approved by the Treasury; and

(ii) such travelling and other allowances as may be determined by the Secretary of State with the approval of the Treasury; and

(b) to any member of a committee or sub-committee of the trust who is not also a director such travelling and other allowances as may be so determined.

(2) If an NHS trust so determines in the case of a person who is or has been a chairman of the trust, the trust shall be liable to pay such pension, allowances or gratuities to or in respect of him as may be determined by the Secretary of State with the approval of the Treasury.

(3) Different determinations may be made under sub-paragraph (1) or (2) in relation to different cases or description of cases.

Specific powers

10

An NHS trust may enter into NHS contracts.

11

An NHS trust may undertake and commission research and make available staff and provide facilities for research by other persons.

12

An NHS trust may—

(a) provide training for persons employed or likely to be employed by the trust or otherwise in the provision of services under this Act; and

(b) make facilities and staff available in connection with training by a university or any other body providing training in connection with the health service.

13

An NHS trust may enter into arrangements for the carrying out on such terms as seem to it to be appropriate, of any of its functions jointly with any Health Board, with the Agency, with another NHS trust or with any other body or individual.

14

According to the nature of its functions, an NHS trust may make accommodation or services or both available for patients who give undertakings (or for whom undertakings are given) to pay, in respect of the accommodation or services (or both) such charges as the trust may determine.

15

For the purpose of making additional income available in order better to perform its functions, an NHS trust shall have the powers specified in section 7(2) of the Health and Medicines Act 1988 (extension of powers of Secretary of State for financing the Health Service).

General powers

16

Subject to Schedule 7B, an NHS trust shall have power to do anything which appears to it to be necessary or expedient for the purpose of or in connection with the discharge of its functions, including in particular power—

(a) to acquire and dispose of land and other property;

(b) to enter into such contracts as seem to the trust to be appropriate;

(c) to accept gifts of money, land or other property, including money, land or other property to be held on trust, for purposes relating to any service which it is their function to provide, administer, or make arrangements for . . .; and

(d) to employ staff on such terms as the trust thinks fit.

17

In connection with arrangements relating to community care services ..., the Secretary of State may by regulations make provision with respect to—

(a) the transfer to employment by a local authority of staff employed by an NHS trust; and

(b) the transfer to employment by a national Health Service body of staff transferred to employment by a local authority by virtue of this paragraph.

and for the purposes of this paragraph “ National Health Service body ” means an NHS trust, a Health Board or the Agency.

18

Regulations made under paragraph 17 may make such incidental and consequential provision in relation to staff transferred by virtue of that paragraph as may be made in relation to officers and servants of a Health Board transferred by virtue of regulations made under paragraph 8A of Schedule 1.

19

Before making regulations under paragraph 17, the Secretary of State shall consult such bodies and organisations as appear to him to be concerned.

20

(1) Without prejudice to the generality of paragraph 16, to or in respect of such of its employees as it may determine, an NHS trust may make such arrangements for providing pensions, allowances or gratuities as it may determine; and such arrangements may include the establishment and administration, by the trust or otherwise, of one or more pension schemes.

(2) The reference in sub-paragraph (1) to pensions, allowances or gratuities to or in respect of employees of an NHS trust includes a reference to pensions, allowances or gratuities by way of compensation to or in respect of any of the trust’s employees who suffer loss of office or employment or loss of diminution of emoluments.

Status

21

An NHS trust shall not be regarded as the servant or agent of the Crown or, except as provided by this Act, as enjoying any status, immunity or privilege of the Crown; and an NHS trust’s property shall not be regarded as property of, or property held on behalf of, the Crown.

Part III — Supplementary Provisions

Reimbursement for health services work carried out otherwise than under contract

22

(1) In any case where an NHS trust provides goods or services for the benefit of an individual and—

(a) those goods or services are not provided pursuant to an NHS contract; and

(b) the condition of the individual is such that he needs those goods or services and, having regard to his condition, it is not practicable before providing them to enter into an NHS contract for their provision, and

(c) the provision of those goods or services is a function of a Health Board or is within the primary functions of a Health Authority established under section 8 of the National Health Service Act 1977, or is within the functions of a Health and Social Care trust mentioned in Article 10(1) of the Health and Personal Social Services (Northern Ireland) Order 1991(S.I. 1991/194 (N.I. 1)) . . .

the trust shall be remunerated by that Board . . . or Health and Social Care trust in respect of the provision of the goods or services in question.

(2) The rate of any remuneration payable by virtue of sub-paragraph (1) shall be calculated in such manner or on such basis as may be determined by the Secretary of State.

23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Use and development of land used for religious purposes and burial grounds

24

Where land consisting of a church or other building used or formerly used for religious worship, or the site thereof, or a burial ground, within the meaning of section 197 of the Town and Country Planning (Scotland) Act 1997 (provisions as to churches and burial grounds), is held by an NHS trust for any of its purposes, that section applies to the land as if—

(a) the land had been acquired by the trust as mentioned in subsection (1) of that section; and

(b) the trust were a statutory undertaker, within the meaing of that Act.

Part IV — Dissolution

25

(1) The Secretary of State may by order dissolve an NHS trust.

(2) An order under this paragraph may be made—

(a) on the application of the NHS trust concerned; or

(b) if the Secretary of State considers it appropriate in the interests of the health service as a whole.

(3) Except where it appears to the Secretary of State necessary to make an order under this paragraph as a matter of urgency, no such order shall be made until after the completion of such consultation as may be prescribed.

26

(1) If an NHS trust is dissolved under this Part of this Schedule, the Secretary of State may by order transfer or provide for the transfer to—

(a) the Secretary of State, or

(b) a Health Board, or

(d) another NHS trust.

of such of the property, rights and liabilities of the NHS trust which is dissolved as in his opinion is appropriate and any such order may include provisions corresponding to those of section 12D.

(1A) For the avoidance of doubt, the reference to “property, rights and liabilities” in sub-paragraph (1) includes endowments and property held in trust.

(2) An order under this paragraph may make provision in connection with the transfer of staff employed by or for the purposes of the NHS trust which is dissolved; and such an order may include provisions corresponding to those of sections 12B and 12C, including provision for the making of a scheme by such body (being a Health Board or the Agency) as may be specified in the order.

(3) No order shall be made under this paragraph until after completion of such consultation as may be prescribed.

27

If an NHS trust is dissolved under this Part of this Schedule, the Secretary of State or such other NHS trust or Health Board as he may direct or, if he so directs, the Agency shall undertake the responsibility for the continued payment of any such pension, allowances or gratuities as, by virtue of paragraph 9(2) or paragraph 20 above, would otherwise have been the responsibility of the trust which has been dissolved.

28

An NHS trust may not be dissolved or wound up except in accordance with this Part of this Schedule.

SCHEDULE 7B

Borrowing

1

(1) Subject to any direction given by the Secretary of State, tothe provisions of this paragraph and to any limit imposed under the following provisions of this Schedule, for the purpose of its functions an NHS trust may borrow (both temporarily, by way of overdraft, and longer term) from the Secretary of State or from any other person.

(2) An NHS trust may not grant any security over any of its assets or in any other way use any of its assets as security for a loan.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) It shall be for the Secretary of State, with the consent of the Treasury, to determine the terms of any loan made by him to an NHS trust (including terms as to the payment of interest, if any).

Guarantees of borrowing

2

(1) The Secretary of State may guarantee, in such manner and on such conditions as, with the approval of the Treasury, he considers appropriate, the repayments of the principal of and the payment of interest on any sums which an NHS trust borrows from a person other than the Secretary of State.

(2) Immediately after a guarantee is given under this paragraph, the Secretary of State shall lay a statement of the guarantee before each House of Parliament.

(3) Where any sum is issued for fulfilling a guarantee so given, the Secretary of State shall lay before each House of Parliament a statement relating to that sum as soon as possible after the end of each financial year beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest on it is finally discharged.

(4) If any sums are issued in fulfilment of a guarantee given under this paragraph, the NHS trust concerned shall make to the Secretary of State, at such times and in such manner as the Secretary of State may from time to time direct,—

(a) payments of such amounts as the Secretary of State with the consent of the Treasury so directs in or towards repayment of the sums so issued; and

(b) payments of interest, at such rates as the Secretary of State with the consent of the Treasury so directs, on what is outstanding for the time being in respect of sums so issued.

Surplus funds

2A

In any financial year the net aggregate amount of sums borrowed by NHS trusts shall not exceed the amount specified for that year for the purposes of this paragraph in a Budget Act.

2B

In paragraph 2A above, “net aggregate amount” means the aggregate amount of sums borrowed in the financial year less any repayments made during that year (otherwise than by way of interest) in respect of sums borrowed in that or any other year.

Limits on indebtedness

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional public dividend capital

5

(1) If the Secretary of State, with the consent of the Treasury, considers it appropriate to do so, he may, instead of making a loan to an NHS trust under paragraph 1, pay an amount to the trust as public dividend capital.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surplus funds

6

If it appears to the Secretary of State that any sum held by an NHS trust other than a sum held on trust under section 12G is surplus to its foreseeable requirements, the trust shall, if the Secretary of State with the approval of the Treasury and after consultation with the trust so directs, pay that sum into the Consolidated Fund.

Investment

7

An NHS trust shall have power to invest money held by it in any investments, including investments which do not produce income, specified in directions made by the Secretary of State with the consent of the Treasury; but nothing in this paragraph applies in relation to money held on trust under section 12G.

8

Any direction with respect to—

(a) the power conferred on an NHS trust by paragraph 1; or

(b) the maximum amount which an NHS trust may invest in any investment or class of investment,

may be given only with the consent of the Treasury.

8

(1) The functions of the Tribunal shall be exercised by three members consisting of—

(a) the chairman or a deputy chairman,

(b) a person appointed under paragraph 1(c) above, and

(c) a person appointed under such one of sub-paragraphs (d) to (h) of paragraph 1 above as provides for the appointment of persons of the same profession or calling as that of the person concerned.

(2) In sub-paragraph (1)(c) above as it has effect in relation to the functions mentioned below, the reference to the person concerned is—

(a) in the case of functions under section 29 to 29C, to the person to whom the representations in question relate,

(b) in the case of functions under section 30 (or paragraph 6 of Schedule 15), to the person whose disqualification or conditional disqualification is under consideration,

(d) in the case of functions under section 32B, to the person in relation to whom section 32A(3) may be made to apply or continue to apply.

(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In the case of functions under section 32A or 32B, sub-paragraph (1) above is subject to section 32C(2)(b).

Carried-over goodwill

3

The fact that a person’s medical practice was previously carried on by another person who at any time provided or performed services as specified in section 35(1) does not, by itself, make it unlawful under section 35(1) for the goodwill of his practice to be sold.

2A

(1) It shall be the duty of the Secretary of State to provide by regulations for payments to be made by him or by a Health Board to meet, or to contribute towards, the cost incurred (whether by way of charge under this Act or otherwise) for the supply of optical appliances for which a prescription has been given in consequence of a testing of sight under this Act—

(a) for a child;

(b) for a person whose resources fall to be treated under the regulations as being less than his requirements; or

(c) for a person of such other description as may be prescribed or for which a prescription has been given for a person such as is mentioned in paragraph (a), (b) or (c) above in consequence of a testing of sight (not being a testing of sight under this Act) which took place in prescribed circumstances.

(2) In sub-paragraph (1) (above) “child” means—

(a) a person who is under the age of 16 years; or

(b) a person who is under the age of 19 years and receiving qualifying full-time education.

(3) The Secretary of State may by regulations—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) provide for payments to be made by him or by a Health Board to meet, or to contribute towards, any cost accepted by him or by the Board as having been incurred (whether by way of charge under this Act or otherwise) for the replacement or repair in prescribed circumstances of optical appliances for which a prescription was given in consequence of a testing of the sight of a person of a prescribed description; and

(c) direct how a person’s resources and requirements are to be calculated and, without prejudice to the generality of this sub-paragraph, give any such direction as to how they are to be calculated as may be given by regulations under section 75A(3).

(3A) Descriptions of persons may be prescribed under this paragraph by reference to any criterion and, without prejudice to the generality of this sub-paragraph, by reference to any of the criteria specified in section 75A(2).

(3B) Subsection (4) of section 75A shall have effect in relation to regulations under this paragraph as it has effect in relation to regulations under that section.

(4) If regulations under this paragraph provide for payments to be made by a Health Board, it shall be the duty of the Secretary of State to pay to the Board, in respect of each financial year, the sum attributable to the Board’s disbursements under the regulations.

(5) Sums falling to be paid in pursuance of regulations made under this paragraph shall be payable subject to compliance with such conditions as to records, certificates or otherwise as the Secretary of State may determine.

7

References in this Schedule to qualifying full-time education mean full-time instruction at a recognised educational establishment or by other means accepted as comparable by the Secretary of State, and for the purposes of such references—

(a) “recognised educational establishment” means an establishment recognised by the Secretary of State as being, or as comparable to, a school, college or university; and

(b) regulations may prescribe the circumstances in which a person is or is not to be treated as receiving full-time instruction.

The National Health Service 1966

The Local Goverment (Scotland) Act 1973

Editorial notes

[^c14157511]: Act extended by Mental Health (Scotland) Act 1984 (c. 36, SIF 85), ss. 17(2), 114(2)

[^c14157521]: Power to amend conferred by Health and Social Security Act 1984 (c. 48, SIF 113:1), s. 28(2)

[^c14157531]: Power to modify conferred (1.4.1991) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 39(8); S.I. 1991/607, art.2(b)

[^c14157541]: By S.I. 1990/2639, art. 4 certain functions of the Secretary of State are made exercisable (1.4.1991) by the Health Education Board for Scotland Act: extended (15.8.1997) by 1997 c. 46, s. 10(1); S.I. 1997/1780, art. 2(1), Sch. Act: modified (15.8.1997) by 1997 c. 46, s. 10(2); S.I. 1997/1780, art. 2(1), Sch. Act: power to restrict conferred (1.4.1998) by 1997 c. 46, s. 13(9), Sch. 1 para. 4(1)(b)(2)(3); S.I. 1998/631, art. 2(a), Sch. 1 Act: power to modify conferred (prosp.) by 1999 c. 8, ss. 61(3)(4), 67(1) Act: certain functions of the Scottish Ministers made exercisable by the Health Technology Board for Scotland (1.4.2000) by virtue of S.S.I. 2000/47, art. 4

[^c14157551]: Act: certain functions transferred (31.3.2002) by S.S.I. 2002/103, art. 4(1)(a) (with art. 4(4))

[^c20959271]: Act modified (5.10.2005) by Mental Health (Care and Treatment) (Scotland) Act 2003 (asp 13), ss. 288(4), 333(3); S.S.I. 2005/161, art. 3 (as substituted by S.S.I. 2005/375, art. 2)

[^c20957741]: S. 1A inserted (1.1.2005) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 9(1), 12(1); S.S.I. 2004/361, art. 2(c)

[^c14158001]: S. 2 modified (15.8.1997) by 1997 c. 46, s. 10(2); S.I. 1997/1780, art. 2(1), Sch.

[^c14158021]: Words substituted by Health and Social Services and Social Security Adjudications Act 1983 (c. 41, SIF 113:3), s. 14(2), Sch. 7 para. 1

[^c20958691]: Words in s. 2(1)(a)(b) substituted (6.8.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 42(1), 43(2), Sch. 2 para. 2(2)

[^c20957351]: Words in s. 2(1)(a) inserted (30.9.2004) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 11(1), 12(1), Sch. 1 para. 1(2)(a); S.S.I. 2004/361, art. 2(b)(iv)

[^c14158031]: S. 2(1)(b) and word “and" preceding it inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 28(a)(ii)

[^c14158051]: S. 2(1A)–(1C) inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 28(b)

[^c20957371]: Word in s. 2(1B) substituted (30.9.2004) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 11(1), 12(1), Sch. 1 para. 1(2)(b); S.S.I. 2004/361, art. 2(b)(iv)

[^c14158071]: S. 2(3)–(5), (8) applied (1.4.1991) by S.I. 1990/2639, art. 5(1)(2), Sch. Pt. I

[^c14158081]: S. 2(3)-(5),(8) applied (1.4.1993) by S.I. 1993/577, art. 5(1)(2), Sch. Pt. I (with art. 6) S. 2(3)(4)(5)(8) applied (1.4.1995) by S.I. 1995/574, art. 5(1)(2), Sch. Pt. I (with art. 6) S. 2(3)(4)(5)(8) applied (1.4.1999) by S.I. 1999/686, art. 5(1)(2), Sch. Pt. I S. 2(3)(4)(5)(8) applied (1.4.1999) by S.I. 1999/726, art. 5(1)(2), Sch. Pt. I S. 2(3)(4)(5)(8) applied (1.4.2000) by S.S.I. 2000/47, art. 5(1)(2), Sch. Pt. I S. 2(3)(4)(5)(8) applied (6.4.2001) by S.S.I. 2001/137, art. 5(1), Sch. Pt. I S. 2(3)(4)(5)(8) applied (31.3.2002) by S.S.I. 2002/103, art. 6, Sch. Pt. I (with art. 4(4)) S. 2(3)(4)(5)(8) applied (27.6.2002) by S.S.I. 2002/305, art. 5(1), Sch. Pt. I (with art. 4(4))

[^c14158121]: S. 2(5) amended by Hospital Complaints Procedure Act 1985 (c. 42, SIF 113:2), s. 1(1)

[^c14158141]: Words inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 66(1), Sch. 9 para. 19(1)

[^c14158171]: S. 2(9) repealed (1.4.1991) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 66(2), Sch. 10

[^c20965631]: S. 2(10A) inserted (temp. from 24.6.2009 for certain purposes and otherwise prosp.) by Health Boards (Membership and Elections) (Scotland) Act 2009 (asp 5), ss. 2(1), 4, 6(2)(3), 7, 11(1); S.S.I. 2009/242, art. 2

[^c20970031]: Words in s. 2C(2) omitted (22.12.2010) by virtue of Tobacco and Primary Medical Services (Scotland) Act 2010 (asp 3), ss. 37(a), 43(3); S.S.I. 2010/372, art. 2(b), Sch. 2

[^c20970071]: S. 2C(2A)(2B) inserted (22.12.2010) by Tobacco and Primary Medical Services (Scotland) Act 2010 (asp 3), {ss. 37(b), 43(3)}; S.S.I. 2010/372, art. 2(b), Sch. 2

[^c20957531]: Words in s. 2C(4) substituted (30.9.2004) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 11(1), 12(1), Sch. 1 para. 1(3); S.S.I. 2004/361, art. 2(b)(iv)

[^c20967541]: S. 2C(7) repealed (7.7.2010) by The National Health Service (Reimbursement of the Cost of EEA Treatment) (Scotland) Regulations 2010 (S.S.I. 2010/283), reg. 3(1)

[^c20952891]: S. 3 repealed (1.4.2004) by Public Appointments and Public Bodies etc. (Scotland) Act 2003 (asp 4), ss. 17, 21(2), Sch. 4 para. 5(2); S.S.I. 2004/148, art. 2(c)

[^c14158211]: Words repealed by Health and Medicines Act 1988 (c. 49, SIF 113:2), s. 25(2), Sch. 3

[^c14158221]: S. 4(1A)–(1C) inserted by Health and Medicines Act 1988 (c. 49, SIF 113:2), s. 12(3)

[^c20966351]: Words in s. 4(1A)(a) substituted (2.7.2010) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 42(1), 43(3), Sch. 2 para. 2(3)(a)(i); S.S.I. 2010/185, art. 3(b), Sch. 2

[^c20966371]: Words in s. 4(1A)(b) inserted (2.7.2010) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 42(1), 43(3), Sch. 2 para. 2(3)(a)(ii); S.S.I. 2010/185, art. 3(b), Sch. 2

[^c20966391]: Words in s. 4(1B) inserted (2.7.2010) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 42(1), 43(3), Sch. 2 para. 2(3)(b); S.S.I. 2010/185, art. 3(b), Sch. 2

[^c20957791]: S. 2A inserted (1.1.2005) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 9(2), 12(1); S.S.I. 2004/361, art. 2(c)

[^c20957421]: S. 2B inserted after s. 2A (30.9.2004) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 7, 12(1); S.S.I. 2004/361, art. 2(b)(i)

[^c20946941]: S. 2C inserted (13.2.2004 for certain purposes otherwise 1.4.2004) by Primary Medical Services (Scotland) Act 2004 (asp 1), ss. 1(2), 9(1); S.S.I. 2004/58, art. 2(1)(3), Sch.

[^c20967571]: S. 2CA inserted (7.7.2010) by The National Health Service (Reimbursement of the Cost of EEA Treatment) (Scotland) Regulations 2010 (S.S.I. 2010/283), reg. 3(2)

[^c20957471]: S. 2D inserted (30.9.2004) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 4, 12(1); S.S.I. 2004/361, art. 2(b)(i)

[^c20973151]: Ss. 2CA, 2CB inserted (prosp.) by virtue of Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 20(2), 43(3)

[^c14158231]: Ss. 5, 6 repealed by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), ss. 29(1), 66(2), Sch. 10

[^c14158241]: Words repealed by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), ss. 29(3)(a), 66(2), Sch. 10

[^c14158251]: Words inserted by Health Services Act 1980 (c. 53), Sch. 6 para. 1(1)

[^c14158261]: Words inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(3)(b)

[^c14158271]: Words inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(3)(c)

[^c14158281]: S. 7(9)(g)(h) inserted by Health Services Act 1980 (c. 53), Sch. 6 para. 1(2)

[^c14158291]: Words inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(4)(a)

[^c14158301]: Words substituted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(4)(b)

[^c14158311]: Words inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(4)(c)

[^c14158391]: Words substituted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(5)(a)

[^c14158401]: Words substituted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(5)(b)

[^c14158421]: Words substituted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 29(5)(c)

[^c14158451]: Words in s. 9(5) substituted (1.10.1999) by 1999 c. 8, s. 65(1), Sch. 4 para. 43(a); S.S.I. 1999/90, art. 2(a)(b), Sch. 1

[^c14158461]: 1997 c.46.

[^c14158471]: Words in s. 9(7) inserted (1.10.1999) by 1999 c. 8, s. 65(1), Sch. 4 para. 43(b); S.S.I. 1999/90, art. 2(a)(b), Sch. 1

[^c14158481]: Words in s. 9(7) substituted (1.10.1999) by 1999 c. 8, s. 65(1), Sch. 4 para. 43(b); S.S.I. 1999/90, art. 2(a)(b), Sch. 1

[^c14158731]: Words substituted by Health Services Act 1980 (c. 53), Sch. 6 para. 2

[^c20958741]: Words in s. 10(3) substituted (6.8.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 42(1), 43(2), Sch. 2 para. 2(4)

[^c14158741]: S. 10(4) applied (1.4.1991) by S.I. 1990/2639, art. 5(1)(2), Sch. Pt. I

[^c14158751]: S. 10(4) applied (1.4.1993) by S.I. 1993/577, art. 5(1), Sch. Pt. I (with art. 6) S. 10(4) applied (1.4.1995) by S.I. 1995/574, art. 5(1)(2), Sch. Pt. I (with art. 6) S. 10(4) applied (1.4.1999) by S.I. 1999/686, art. 5(1)(2), Sch. Pt. I S. 10(4) applied (1.4.1999) by S.I. 1999/726, art. 5(1)(2), Sch. Pt. I S. 10(4) applied (1.4.2000) by S.S.I. 2000/47, art. 5(1)(2), Sch. Pt. I S. 10(4) applied (6.4.2001) by S.S.I. 2001/137, art. 5(1), Sch. Pt. I S. 10(4) applied (31.3.2002) by S.S.I. 2002/103, art. 6, Sch. Pt. I (with art. 4(4)) S. 10(4) applied (27.6.2002) by S.S.I. 2002/305, art. 5(1), Sch. Pt. I (with art. 4(4))

[^c14158761]: Words repealed by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 66(2), Sch. 10

[^c14158771]: Words in s. 10(4) inserted (1.10.1999) by 1999 c. 8, s. 65(1), Sch. 4 para. 44(a); S.S.I. 1999/90, art. 2(a)(b), Sch. 1

[^c14158781]: Words in s. 10(4) inserted (1.10.1999) by 1999 c. 8, s. 65(1), Sch. 4 para. 44(b); S.S.I. 1999/90, art. 2(a)(b), Sch. 1

[^c14158791]: Words in s. 10(4) inserted (1.10.1999) by 1999 c. 8, s. 65(1), Sch. 4 para. 44(c); S.S.I. 1990/90, art. 2(a)(b), Sch. 1

[^c14158801]: S. 10(9) repealed (1.4.1991) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 66(2), Sch. 10

[^c20956691]: S. 11 repealed (6.5.2004) by Public Appointments and Public Bodies etc. (Scotland) Act 2003 (asp 4), ss. 17, 21(2), Sch. 4 para. 5(3); S.S.I. 2004/198, art. 2(c)

[^c20959301]: S. 12(1)(2) repealed (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(a), 43(3) ; S.S.I. 2005/492, art. 3(b), Sch. 2

[^c20959321]: S. 12(1)(2) repealed (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(a), 43(3) ; S.S.I. 2005/492, art. 3(b), Sch. 2

[^c20959421]: Words in s. 12(3) substituted (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(b), 43(3); S.S.I. 2005/492, art. 3(b), Sch. 2

[^c14158871]: S. 12(4A)(4B) inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 66(1), Sch. 9 para. 19(3)

[^c20959441]: Words in s. 12(4B) repealed (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(c), 43(3); S.S.I. 2005/492, art. 3(b), Sch. 2

[^c20959461]: S. 12(5) repealed (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(d), 43(3); S.S.I. 2005/492, art. 3(b), Sch. 2

[^c20959501]: Words in s. 12(6) repealed (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(e), 43(3); S.S.I. 2005/492, art. 3(b), Sch. 2

[^c20959521]: S. 12(6A) repealed (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(f), 43(3); S.S.I. 2005/492, art. 3(b), Sch. 2

[^c20959541]: S. 12(7) substituted (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(g), 43(3); S.S.I. 2005/492, art. 3(b), Sch. 2

[^c20959561]: S. 12(8) inserted (1.11.2005) by Smoking, Health and Social Care (Scotland) Act 2005 (asp 13), ss. 38(2)(h), 43(3); S.S.I. 2005/492, art. 3(b), Sch. 2

[^c14159041]: Ss. 12A–12F inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 31

[^c20957271]: S. 12A repealed (1.9.2004 but only for the purpose stated in art. 2(a)(i) of the commencing S.S.I.) by National Health Service Reform (Scotland) Act 2004 (asp 7), ss. 1(1), 12(1), S.S.I. 2004/361, art. 2(a)(i)

[^c14159141]: S. 12AA inserted (1.10.1999) by 1999 c. 8 s. 47; S.S.I. 1999/90, art. 2(a), Sch. 1

[^c14159151]: Ss. 12A–12F inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 31

[^c14159201]: Ss. 12A–12F inserted by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 31

[^c14159211]: S. 12C(2)(d) and word “and" immediately preceding it repealed (6.2.1995) by S.I. 1995/31, reg. 6, Sch.

[^c14159221]: Words in s. 12C(3) substituted (22.8.1996) by 1996 c. 18, ss. 240, 243, Sch. 1 para. 13(a) (with ss. 191-195, 202)

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