Legalize / United Kingdom / Public General Act

National Health Service Act 2006

Type Public General Act

Publication 2006-11-08

Last updated 2025-09-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(e) sub-paragraphs (a) and (b) of paragraph 5 of that Schedule and section 4A(1) and (3) of the National Health Service and Community Care Act 1990 (c. 19) as amended by those sub-paragraphs (see section 11 of this Act),

(f) sub-paragraph (c) of paragraph 5 of that Schedule and section 4A(4) of the National Health Service and Community Care Act 1990 as added by that sub-paragraph (see section 11 of this Act),

(g) section 34 of the 2006 Act, and section 42A of the 1977 Act as inserted by that section (see section 131 of this Act),

(h) section 35 of the 2006 Act, and subsections (2B) and (2C) of section 42 of the 1977 Act as inserted by that section (see section 129 of this Act),

(i) subsection (1) of section 36 of the 2006 Act, and section 43(2) of the 1977 Act as substituted by that subsection (see section 132 of this Act),

(j) sections 37 to 41 of, and paragraphs 7 to 9, 11, 12(a), 13(2), (5) and (6), 15, 16, 17, 21(b), 22, 29, 46 and 50 of Schedule 8 to, the 2006 Act (which relate to primary ophthalmic services) and—

(i) the 1977 Act,

(ii) section 4A of the National Health Service and Community Care Act 1990,

(iii) Schedule 1 to the Health and Social Care Act 2001 (c. 15), and

(iv) section 17(1) of the National Health Service Reform and Health Care Professions Act 2002 (c. 17),

to the extent that a provision mentioned in any of sub-paragraphs (i) to (iv), as amended by any of those provisions of the 2006 Act, relates to primary ophthalmic services,

(k) subsection (2) of section 42 of the 2006 Act, and paragraph 2A(1)(b) and (ba) of Schedule 12 to the 1977 Act as substituted by that subsection (see section 180 of this Act),

(l) subsection (3) of section 42 of the 2006 Act, and paragraph 2B of Schedule 12 to the 1977 Act as inserted by that subsection (see section 181 of this Act),

(m) sections 44 to 55 of the 2006 Act, and sections 76 to 78 of that Act so far as relating to those sections (see Part 10 of this Act),

(n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(o) paragraphs 14, 24(b) and 25 of Schedule 8 to the 2006 Act (which relate to the substitution of “optometrist” for “ophthalmic optician”) and the 1977 Act as amended by those paragraphs.

(4) To the extent that—

(a) this Act re-enacts a provision to which this subsection applies, and

(b) the provision has not come into force before the commencement of this Act,

the re-enactment by this Act of the provision does not come into force until the provision which is re-enacted comes into force; and the re-enactment comes into force immediately after, and to the extent that, the provision which is re-enacted comes into force.

(5) Accordingly, the re-enactment by this Act of the provision does not affect any power to bring the provision into force.

Short title, extent and application

278

(1) This Act may be cited as the National Health Service Act 2006.

(2) Subject to this section, this Act extends to England and Wales only.

(3) Sections 260 to 266 in Part 13 (price of medical supplies) , and this Part to the extent that it applies to those sections, extend also to Scotland and Northern Ireland.

(4) The Secretary of State may by order provide that this Act, in its application to the Isles of Scilly, has effect with such modifications as may be specified in the order.

SCHEDULE 1

Medical inspection of pupils

1

A local authority must provide for the medical inspection at appropriate intervals of pupils in attendance at schools maintained by the local authority and for the medical treatment of such pupils.

2

(1) A local authority may ... provide for any medical inspection or treatment of—

(a) senior pupils in attendance at any educational establishment, other than a school, which is maintained by the authority and at which full-time further education is provided, or

(b) any child or young person who, in pursuance of section 19 or 19A or 319 of the Education Act 1996 (c. 56) or section 53 of the Additional Learning Needs and Education Tribunal (Wales) Act 2018, is receiving primary or secondary education otherwise than at a school.

(2) A local authority may, by arrangement with the proprietor of any educational establishment in its area which is not maintained by the local authority, provide for any medical inspection or treatment of junior or senior pupils in attendance at the establishment.

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

3

An arrangement under paragraph 2(2) may provide for payments by the proprietor in question.

4

A local authority may not provide for any medical inspection or treatment under paragraph 2(1)(a) unless the governing body of the educational establishment agrees to the inspection or (as the case may be) treatment.

5

(1) Sub-paragraph (2) applies to—

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

(b) each governing body of a foundation, voluntary or foundation special school, in respect of the school.

(2) The ... governing body must make available to a local authority such accommodation as is appropriate for the purpose of assisting it to make provision under paragraph 1 in relation to the pupils in attendance at the schools or school in question.

6

In paragraphs 1 to 5 any expression to which a meaning is given for the purposes of the Education Act 1996 (c. 56) or the School Standards and Framework Act 1998 (c. 31) has that meaning.

7

Any charge made under regulations under this Act in respect of the supply of drugs, medicines or appliances must be disregarded for the purposes of paragraphs 1 and 2.

Contraceptive services

8

The Secretary of State must arrange, to such extent as he considers necessary to meet all reasonable requirements, for—

(a) the giving of advice on contraception,

(b) the medical examination of persons seeking advice on contraception,

(d) the supply of contraceptive substances and appliances.

Provision of vehicles for disabled persons

9

(1) An integrated care board may make arrangements for the provision of vehicles (including wheelchairs) for people for whom the board has responsibility and who appear to it to have a physical impairment which has a substantial and long-term adverse effect on their ability to carry out normal day-to-day activities.

(2) For the purposes of this paragraph an integrated care board has responsibility for—

(a) the group of people for whom it has core responsibility (see section 14Z31), and

(b) such other people as may be prescribed (whether generally or in relation to a prescribed vehicle).

10

(1) Sub-paragraphs (2) and (3) apply in respect of—

(a) a vehicle provided in pursuance of arrangements made under paragraph 9, and

(b) a vehicle belonging to a person mentioned in that paragraph.

(2) The integrated care board may make arrangements for —

(a) the adaptation of the vehicle to make it suitable for the circumstances of the person in question,

(b) the maintenance and repair of the vehicle,

(c) the taking out of insurance policies relating to the vehicle and the payment of any duty with which the vehicle is chargeable under the Vehicle Excise and Registration Act 1994 (c. 22),

(d) the provision of a structure in which the vehicle may be kept, and the provision of all material and the execution of all works necessary to erect the structure.

(3) An integrated care board may make payments by way of grant towards costs incurred by a person mentioned in paragraph 9 in respect of any matter mentioned in sub-paragraph (4) in relation to the vehicle.

(4) The matters are—

(a) the taking of action referred to in sub-paragraph (2),

(b) the purchase of fuel for the purposes of the vehicle, so far as the cost of the purchase is attributable to duties of excise payable in respect of the fuel, and

(5) The powers under sub-paragraph (2) and sub-paragraph (3) may be exercised on such terms and subject to such conditions as the integrated care board may determine.

11

Regulations may provide for any incidental or supplementary matter for which it appears to the Secretary of State necessary or expedient to provide in connection with—

(a) the taking of action under paragraph 10(2), or

(b) the making of any payment under paragraph 10(3).

Provision of a microbiological service by the Secretary of State

12

(1) The Secretary of State may—

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

(b) carry on such ... activities as in his opinion can conveniently be carried on in conjunction with a microbiological service provided under section 2A.

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

(3) Charges may be made for services or materials supplied.

(4) A power under this paragraph may be exercised both for the purposes of the health service and for other purposes.

Powers of the Secretary of State in relation to research

13

(1) The Secretary of State, NHS England or an integrated care board may conduct, commission or assist the conduct of research into—

(a) any matters relating to the causation, prevention, diagnosis or treatment of illness, and

(b) any such other matters connected with any service provided under this Act as the Secretary of State, NHS England or the integrated care board (as the case may be) considers appropriate.

(2) A local authority may conduct, commission or assist the conduct of research for any purpose connected with the exercise of its functions in relation to the health service.

(3) The Secretary of State, NHS England, an integrated care board or a local authority may for any purpose connected with the exercise of its functions in relation to the health service—

(a) obtain and analyse data or other information;

(b) obtain advice from persons with appropriate professional expertise.

(4) The power under sub-paragraph (1) or (2) to assist any person to conduct research includes power to do so by providing financial assistance or making the services of any person or other resources available.

(5) In this paragraph, “local authority” has the same meaning as in section 2B.

SCHEDULE 2

Corporate status

1

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

Pay and allowances

2

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

Membership of Strategic Health Authorities

3

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

4

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

5

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

6

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

Staff

7

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

8

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

Miscellaneous

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

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

17

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

SCHEDULE 3

Part 1 — Constitution and membership

Status

1

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

2

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

Membership

3

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

4

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

5

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

6

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

Staff

7

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

8

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

9

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

10

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

Remuneration, pensions etc of members

11

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

Trust funds and trustees

12

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

Part 2 — PCT orders

13

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

14

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

Part 3 — Powers and duties

General

15

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

Rights and liabilities

16

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

Powers of Primary Care Trusts to enter into externally financed development agreements

17

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

Research

18

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

Training

19

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

Specific duties

20

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

21

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

Compulsory acquisition

22

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

Dissolution

23

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

Part 4 — Transfer of property

24

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

25

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

Part 5 — Transfer of staff

26

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

27

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

28

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

29

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

SCHEDULE 4

Part 1 — Constitution, establishment, etc

Status

1

Each NHS trust is a body corporate.

2

(1) An NHS trust must not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.

(2) An NHS trust's property must not be regarded as property of, or property held on behalf of, the Crown.

Board of directors

3

(1) Each NHS trust has a board of directors consisting of—

(a) a chairman appointed by NHS England, and

(b) executive and non-executive directors.

(2) Sub-paragraph (1)(b) is subject to paragraph 7(2).

(3) An executive director is a director who is an employee of the NHS trust, and a non-executive director is a director who is not an employee of the NHS trust.

(4) Sub-paragraph (3) is subject to any provision made by regulations under paragraph 4(1)(d).

Regulations

4

(1) The Secretary of State may by regulations make provision with respect to—

(a) the qualifications for and the tenure of office of the chairman and directors of an NHS trust (including the circumstances in which they cease to hold, or may be removed from, office or may be suspended from performing the functions of the office),

(b) the persons by whom the directors and any of the officers must be appointed and the manner of their appointment,

(d) the circumstances in which a person who is not an employee of the NHS trust is nevertheless, on appointment as a director, to be regarded as an executive rather than a non-executive director,

(e) the proceedings of the NHS trust (including the validation of proceedings in the event of a vacancy or defect in appointment), and

(f) the appointment, constitution and exercise of functions by committees and sub-committees of the NHS trust (whether or not consisting of or including any members of the board).

(2) Regulations under sub-paragraph (1) may, in particular, make provision to deal with cases where the post of any officer of an NHS trust is held jointly by two or more persons or where the functions of such an officer are in any other way performed by more than one person.

Provision to be made by first NHS trust order

5

(1) The first NHS trust order made in relation to any NHS trust must specify—

(a) the name of the NHS trust,

(b) the functions of the NHS trust,

(d) where the NHS trust has a significant teaching commitment, a provision to secure the inclusion in the non-executive directors 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 NHS trust, and

(f) if a scheme is to be made under paragraph 8, the ... Special Health Authority or Local Health Board which is to make the scheme.

(2) The functions which may be specified in an NHS trust order include a duty to provide goods or services so specified at or from a hospital or other establishment or facility so specified.

(3) For the purposes of sub-paragraph (1)(d), an NHS trust has a significant teaching commitment in the following cases—

(a) if the NHS 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.

(4) In a case where the order contains a provision made by virtue of sub-paragraph (1)(d) and a person who is being considered for appointment by virtue of that provision—

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

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

his employment by the NHS trust must be disregarded in determining whether, if appointed, he will be a non-executive director of the NHS trust.

(5) The operational date of the NHS trust is the date on which it will begin to undertake the whole of the functions conferred on it.

(6) An NHS trust order must specify the accounting date of the NHS trust.

Temporary availability of staff etc.

6

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

(2) An NHS trust order making provision under this paragraph may make provision with respect to the time when the functions of the ... Special Health Authority ... or Local Health Board under the provision are to come to an end.

Establishment of NHS trust prior to operational date

7

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

(2) If an NHS trust 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 must be regarded as properly constituted (and may carry out its limited functions accordingly) notwithstanding that, at that time, all or any of the executive directors have not yet been appointed.

(3) If an NHS trust order makes the provision referred to in sub-paragraph (1), the order may require a ... Special Health Authority or Local 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.

Transfer of staff to NHS trusts

8

(1) This paragraph applies to any person who, immediately before an NHS trust's operational date—

(a) is employed by a Special Health Authority ... or Local Health Board to work solely at, or for the purposes of, a hospital or other establishment or facility which will become the responsibility of the NHS trust, or

(b) is employed by a Special Health Authority ... or Local Health Board to work at, or for the purposes of, such a hospital, establishment or facility and is designated for the purposes of this paragraph by a scheme made by the Special Health Authority ... or Local Health Board specified as mentioned in paragraph 5(1)(f).

(2) Sub-paragraph (1) is subject to sub-paragraph (6).

(3) A scheme under this paragraph does not have effect unless approved by the Secretary of State.

(4) Subject to sub-paragraphs (9) to (11), the contract of employment between a person to whom this paragraph applies and the Special Health Authority ... or Local Health Board by whom he is employed has effect from the operational date as if originally made between him and the NHS trust.

(5) In particular—

(a) all the rights, powers, duties and liabilities of the Special Health Authority ... or Local Health Board under or in connection with a contract to which sub-paragraph (4) applies are by virtue of this paragraph transferred to the NHS trust on its operational date, and

(b) anything done before that date by or in relation to the Special Health Authority ... or Local Health Board in respect of that contract or the employee is deemed from that date to have been done by or in relation to the NHS trust.

(6) In any case where—

(a) an NHS trust order provides for the establishment of an NHS trust with effect from a date earlier than the operational date of the NHS trust,

(b) on or after that earlier date but before its operational date the NHS trust makes an offer of employment by the NHS trust to a person who at that time is employed by a Special Health Authority ... or Local Health Board to work (whether solely or otherwise) at, or for the purposes of, the hospital or other establishment or facility which will become the responsibility of the NHS trust, and

sub-paragraphs (4) and (5) have effect in relation to that person's contract of employment as if he were a person to whom this paragraph applies and as if any reference in those sub-paragraphs to the operational date of the NHS trust were a reference to the date on which he takes up employment with the NHS trust.

(7) Sub-paragraphs (4) and (5) do not affect any right of an employee to terminate his contract of employment if a substantial change is made to his detriment in his working conditions; but no such right arises by reason only of the change in employer effected by this paragraph.

(8) A scheme under this paragraph may designate a person either individually or as a member of a class or description of employees.

(9) In the case of a person who falls within sub-paragraph (1)(b), a scheme under this paragraph may provide that, with effect from the NHS trust's operational date, his contract of employment (his “original contract”) must be treated, in accordance with the scheme, as divided so as to constitute—

(a) a contract of employment with the NHS trust, and

(b) a contract of employment with the Special Health Authority ... or Local Health Board by whom he was employed before that date (the “transferor authority”).

(10) Where a scheme makes provision as mentioned in sub-paragraph (9)—

(a) the scheme must secure that the benefits to the employee under the two contracts referred to in that sub-paragraph, when taken together, are not less favourable than the benefits under his original contract,

(b) this paragraph applies in relation to the contract referred to in sub-paragraph (9)(a) as if it were a contract transferred under this paragraph from the transferor authority to the NHS trust, and

(c) so far as necessary to preserve any rights and obligations, the contract referred to in sub-paragraph (9)(b) must be regarded as a continuation of the employee's original contract.

(11) Where, as a result of the provisions of this paragraph, by virtue of his employment during any period after the operational date of the NHS trust—

(a) an employee has contractual rights against an NHS trust to benefits in the event of his redundancy, and

(b) he also has statutory rights against the trust under Part 11 of the Employment Rights Act 1996 (c. 18) (redundancy payments),

any benefits provided to him by virtue of the contractual rights referred to in paragraph (a) must be taken as satisfying his entitlement to benefits under that Part of that Act.

Transfer of property and liabilities to NHS trusts

9

(1) The Secretary of State may by order transfer, or provide for the transfer of, any of the property and liabilities of ... ... a Special Health Authority, a Local Health Board or the Secretary of State, to an NHS trust, with effect from any date as may be specified in the order.

(2) An order under this paragraph may create or impose such new rights or liabilities in respect of what is transferred or what is retained as appear to the Secretary of State to be necessary or expedient.

(3) Nothing in this paragraph affects the power of the Secretary of State or any power of a ... ... Special Health Authority or Local Health Board to transfer property or liabilities to an NHS trust otherwise than under sub-paragraph (1).

(4) Stamp duty is not chargeable in respect of any transfer to an NHS trust effected by or by virtue of an order under this paragraph.

(5) Where an order under this paragraph provides for the transfer—

(a) of land held on lease from a third party, or

(b) of any other asset leased or hired from a third party or in which a third party has an interest,

the transfer is binding on the third party notwithstanding that, apart from this sub-paragraph, it would have required his consent or concurrence.

(6) “Third party” means a person other than the Secretary of State, ...... a Special Health Authority or a Local Health Board.

(7) Any property and liabilities which—

(a) belong to, or are used or managed by, a ... Special Health Authority or Local Health Board ..., and

(b) will be transferred to an NHS trust by or by virtue of an order under this paragraph,

must be identified by agreement between the ... ... Special Health Authority or Local Health Board and the NHS trust or, in default of agreement, by direction of the Secretary of State.

(8) Where, for the purpose of a transfer pursuant to an order under this paragraph, it becomes necessary to apportion any property or liabilities, the order may contain such provisions as appear to the Secretary of State to be appropriate for the purpose.

(9) Where any such property or rights fall within sub-paragraph (5), the order must contain such provisions as appear to the Secretary of State to be appropriate to safeguard the interests of third parties, including, where appropriate, provision for the payment of compensation of an amount to be determined in accordance with the order.

(10) In the case of any transfer made by or pursuant to an order under this paragraph, a certificate issued by the Secretary of State that any property specified in the certificate or any such interest in or right over any such property as may be so specified, or any right or liability so specified, is vested in the NHS trust specified in the order is conclusive evidence of that fact for all purposes.

(11) An order under this paragraph may include provision for matters to be settled by arbitration by a person determined in accordance with the order.

(12) Sub-paragraph (11) does not affect section 272(8).

Trust funds and trustees

10

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

Pay and allowances

11

(1) An NHS trust must pay—

(a) to the chairman and any non-executive director of the NHS trust remuneration of an amount determined by the Secretary of State, not exceeding such amount as may be approved by the Treasury,

(b) to the chairman and any non-executive director of the NHS trust such travelling and other allowances as may be determined by the Secretary of State with the approval of the Treasury,

(c) to any member of a committee or sub-committee of the NHS 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 NHS trust, the NHS trust must 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 sub-paragraph (2) in relation to different cases or descriptions of cases.

Reports and other information

12

(1) For each accounting year an NHS trust must prepare and send to NHS England an annual report in such form as may be determined by NHS England.

(1A) The annual report must, in particular, review the extent to which the NHS trust has exercised its functions in accordance with the plans published under—

(a) section 14Z52 (joint forward plans for integrated care board and its partners), and

(b) section 14Z56 (joint capital resource use plan for integrated care board and its partners).

(1B) The annual report must, in particular, review the extent to which the NHS trust has exercised its functions consistently with NHS England’s views set out in the latest statement published under section 13SA(1) (views about how functions relating to inequalities information should be exercised).

(2) At such time or times as may be prescribed, an NHS trust must hold a public meeting at which must be presented—

(a) its audited accounts and annual report, and

(b) any report on the accounts made pursuant to section 8 of the Audit Commission Act 1998 (c. 18) or paragraph 19 of Schedule 8 to the Government of Wales Act 2006 (c. 32).

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

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

13

(1) An NHS trust must furnish to the Secretary of State or NHS England such reports, returns and other information, including information as to its forward planning, as, and in such form as, the Secretary of State or NHS England may require.

(2) An integrated care board may require any of its partner NHS trusts to provide it with any information that it requires.

(3) Information required under sub-paragraph (2) must be provided in such form, and at such time or within such period, as may be specified by the integrated care board.

Part 2 — Powers and duties

General

14

(1) An NHS trust may do anything which appears to it to be necessary or expedient for the purposes of or in connection with its functions.

(2) In particular it may—

(a) acquire and dispose of property,

(b) enter into contracts, and

(c) accept gifts of property (including property to be held on trust, either for the general or any specific purposes of the NHS trust or for any purposes relating to the health service).

(3) The reference in sub-paragraph (2)(c) to specific purposes of the NHS trust includes a reference to the purposes of a specific hospital or other establishment or facility at or from which services are provided by the NHS trust.

NHS contracts

15

(1) In addition to carrying out its other functions, an NHS trust may, as the provider, enter into NHS contracts.

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

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

Research

16

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

Training

17

An NHS trust may—

(a) provide training for persons employed or likely to be employed by the NHS 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.

Joint exercise of functions

18

An NHS trust may enter into arrangements for the carrying out, on such terms as the NHS trust considers appropriate, of any of its functions jointly with any ... ... Special Health Authority, Local Health Board or other NHS trust, or any other body or individual.

Payment for accommodation or services

19

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

(2) An NHS trust may exercise the power conferred by sub-paragraph (1) only—

(a) to the extent that its exercise does not to any significant extent interfere with the performance by the NHS trust of its functions or of its obligations under NHS contracts, and

(b) in circumstances specified in directions under section 8, with the Secretary of State's consent.

Additional income

20

(1) For the purpose of making additional income available in order better to perform its functions, an NHS trust has the powers specified in section 7(2) of the Health and Medicines Act 1988 (c. 49) (extension of powers of Secretary of State for financing the health service).

(2) The power conferred by sub-paragraph (1) may be exercised only—

(a) to the extent that its exercise does not to any significant extent interfere with the performance by the NHS trust of its functions or of its obligations under NHS contracts, ...

(b) in circumstances specified in directions under section 8, with the consent of the Secretary of State , and

Provision of accommodation and services outside England and Wales

21

An NHS Trust may arrange for the provision of accommodation and services outside England and Wales.

Conferral of further powers by order

22

The Secretary of State may by order confer specific powers on NHS trusts, further to those provided for by paragraphs 15 to 21.

Powers of NHS trusts to enter into externally financed development agreements

23

(1) The powers of an NHS trust include power to enter into externally financed development agreements.

(2) For the purposes of this paragraph, an agreement is an externally financed development agreement if it is certified as such in writing by the Secretary of State.

(3) The Secretary of State may give a certificate under this paragraph if—

(a) in his opinion the purpose or main purpose of the agreement is the provision of facilities or services in connection with the discharge by the NHS trust of any of its functions, and

(b) a person proposes to make a loan to, or provide any other form of finance for, another party in connection with the agreement.

(4) If an NHS trust enters into an externally financed development agreement it may also, in connection with that agreement, enter into an agreement with a person who falls within sub-paragraph (3)(b) in relation to the externally financed development agreement.

(5) “Another party” means any party to the agreement other than the NHS trust.

(6) The fact that an agreement made by an NHS trust has not been certified under this paragraph does not affect its validity.

Agreements under section 92 or 107

24

An NHS trust may provide services under an agreement made under section 92 (primary medical services) or section 107 (primary dental services) and may do so as a member of a qualifying body (within the meaning given by section 93 or section 108).

Staff

25

(1) An NHS trust may employ such staff as it considers appropriate.

(2) An NHS trust may—

(a) pay its staff such remuneration and allowances, and

(b) employ them on such other terms and conditions,

as it considers appropriate.

(3) An NHS trust must—

(a) in exercising its powers under sub-paragraph (2), and

(b) otherwise in connection with the employment of its staff,

act in accordance with regulations and any directions given by the Secretary of State and any directions given by NHS England under section 27B.

(4) Before making any regulations under sub-paragraph (3), the Secretary of State must consult such bodies as he may recognise as representing persons who, in his opinion, are likely to be affected by the regulations.

Pensions, etc.

26

(1) An NHS trust may, for or in respect of such of its employees as it may determine, make arrangements for providing pensions, allowances or gratuities.

(2) Such arrangements may include the establishment and administration, by the NHS trust or otherwise, of one or more pension schemes.

(3) 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 NHS trust's employees who suffer loss of office or employment or loss or diminution of emoluments.

(4) This paragraph does not affect the generality of paragraphs 14 and 25.

Compulsory acquisition

27

(1) An NHS trust may be authorised to purchase land compulsorily for the purposes of its functions by means of an order made by the NHS trust and confirmed by the Secretary of State.

(2) Subject to sub-paragraph (3), the Acquisition of Land Act 1981 (c. 67) applies to the compulsory purchase of land under this paragraph.

(3) No order may be made by an NHS trust under Part 2 of the Acquisition of Land Act 1981 with respect to any land unless the proposal to acquire the land compulsorily—

(a) has been submitted to the Secretary of State in such form and together with such information as he may require, and

(b) has been approved by him.

Part 3 — Dissolution

28

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

(1A) An order under this paragraph may be made by NHS England only with the approval of the Secretary of State.

(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 or NHS England considers it appropriate in the interests of the health service.

(3) Except where it appears to the Secretary of State or NHS England necessary to make an order under this paragraph as a matter of urgency or where the order is made following the publication of a final report under section 65I(3), no such order may be made until after the completion of such consultation as may be prescribed.

29

(1) If an NHS trust is dissolved under paragraph 28, the Secretary of State or NHS England may by order transfer, or provide for the transfer of, the property and liabilities of the NHS trust to the Secretary of State or an NHS body; and such an order may include provisions corresponding to those of paragraph 9.

(2) The liabilities which may be transferred by virtue of sub-paragraph (1) to an NHS body include criminal liabilities.

(3) 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 paragraph 8, including provision for the making of a scheme by such ... Special Health Authority, Local Health Board or other body as may be specified in the order.

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

30

(1) If an NHS trust is dissolved under paragraph 28, the Secretary of State or such other NHS trust, ... ... Special Health Authority or Local Health Board as he or NHS England may direct must undertake the responsibility for the continued payment of any such pension, allowances or gratuities as, by virtue of paragraph 11(2) or paragraph 26, would otherwise have been the responsibility of the NHS trust which has been dissolved.

(2) Sub-paragraph (1) does not affect the generality of paragraph 29.

31

Subject to section 56AA, an NHS trust may not be dissolved or wound up except in accordance with paragraph 28 or section 57.

Part 4 — Miscellaneous

Use and development of consecrated land and burial grounds

32

Section 128 of the Town and Country Planning Act 1971 (c. 78) (use and development of consecrated land and burial grounds) applies to consecrated land and land comprised in a burial ground, within the meaning of that section, which an NHS trust holds for any of its purposes as if—

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

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

Instruments etc.

33

(1) The fixing of the seal of an NHS trust must be authenticated by the signature—

(a) of the chairman or of some other person authorised (whether generally or specifically) by the NHS trust for that purpose, and

(b) of one other director.

(2) A document purporting to be duly executed under the seal of an NHS trust must be received in evidence and must, unless the contrary is proved, be taken to be so executed.

(3) A document purporting to be signed on behalf of an NHS trust must be received in evidence and must, unless the contrary is proved, be taken to be so signed.

Interpretation

34

In this Schedule—

“provide” includes manage,

“operational date” has the meaning given by paragraph 5(5).

SCHEDULE 5

Originating capital of NHS trusts

1

(1) Each NHS trust has an originating capital of an amount specified in an order made by the Secretary of State.

(2) The originating capital of an NHS trust is an amount representing the excess of the valuation of its assets over the amounts of its liabilities.

(3) In determining the originating capital of an NHS trust, there must be left out of account such assets or liabilities as are, or are of a class, determined for the purposes of this paragraph by the Secretary of State with the consent of the Treasury.

(4) An NHS trust's originating capital is deemed to have been issued out of moneys provided by Parliament and is an asset of the Consolidated Fund.

(5) An NHS trust's originating capital is public dividend capital.

(6) With the consent of the Treasury, the Secretary of State may determine—

(a) the dividend which is payable at any time on any public dividend capital issued, or treated as issued, to an NHS trust under this Act,

(b) the amount of any such public dividend capital which must be repaid at any time,

(7) An order under sub-paragraph (1) may be made only with the consent of the Treasury.

(8) In this paragraph—

“assets” means the assets which, on or in connection with the establishment of the NHS trust, are or will be transferred to it (whether before, on or after its operational date), and

“liabilities” means the liabilities which are or will be so transferred.

Financial obligations of NHS trusts

2

(1) Each NHS trust must ensure that its revenue is not less than sufficient, taking one financial year with another, to meet outgoings properly chargeable to revenue account.

(2) NHS England may set financial objectives for NHS trusts.

(3) An NHS trust must achieve any financial objectives set under sub-paragraph (2).

(4) Financial objectives under sub-paragraph (2) may apply to NHS trusts generally, or to a particular NHS trust or NHS trusts of a particular description.

Borrowing

3

(1) 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) Sub-paragraph (1) is subject to any direction given by the Secretary of State under section 8, to the provisions of this paragraph and to any limit imposed under this Schedule.

(3) An NHS trust may not mortgage or charge any of its assets or in any other way use any of its assets as security for a loan.

(4) The Secretary of State must 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

4

(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 must 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 must 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 must 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.

Limits on indebtedness

5

The aggregate of all sums borrowed by NHS trusts which are required to provide or manage services at or from hospitals or other establishments or facilities which are situated in England must not exceed £5,000 million or such other sum not exceeding £10,000 million as may be specified by order made by the Secretary of State with the consent of the Treasury.

Additional public dividend capital

6

The Secretary of State may, with the consent of the Treasury, instead of making a loan to an NHS trust under paragraph 3, pay an amount to the NHS trust as public dividend capital.

Supplementary payments

7

(1) The Secretary of State may make a payment to an NHS trust.

(2) The payment may be subject to such conditions as he considers appropriate, including conditions as to repayment.

Surplus funds

8

If it appears to the Secretary of State that any sum held by an NHS trust otherwise than as trustee is surplus to its foreseeable requirements, the trust must, 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

9

(1) An NHS trust has power to invest money held by it in any investments, including investments which do not produce income, specified in directions under section 8.

(2) Sub-paragraph (1) does not apply in relation to money held by an NHS trust as trustee.

10

Any direction under section 8 with respect to—

(a) the power conferred on an NHS trust by paragraph 3, or

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

may be given only with the consent of the Treasury.

SCHEDULE 6

Corporate status

1

Each Special Health Authority is a body corporate.

Pay and allowances

2

(1) The Secretary of State may pay to—

(a) the chairman of a Special Health Authority, and

(b) any member of a Special Health Authority who is appointed by the Secretary of State,

such remuneration as he may determine with the approval of the Treasury.

(2) The Secretary of State may provide as he may determine with the approval of the Treasury for the payment of a pension, allowance or gratuity to or in respect of the chairman of a Special Health Authority.

(3) Where a person ceases to be chairman of a Special Health Authority, and it appears to the Secretary of State that there are special circumstances which make it right for that person to receive compensation, the Secretary of State may make him a payment of such amount as the Secretary of State may determine with the approval of the Treasury.

(4) The Secretary of State may pay to a member of a Special Health Authority, or of a committee or sub-committee of, or joint committee or joint sub-committee including, a Special Health Authority, such travelling and other allowances (including attendance allowance or compensation for the loss of remunerative time) as he may determine with the approval of the Treasury.

(5) Allowances may not be paid under sub-paragraph (4) except in connection with the exercise, in such circumstances as the Secretary of State may determine with the approval of the Treasury, of such functions as he may so determine.

(6) Payments under this paragraph must be made at such times, and in such manner and subject to such conditions, as the Secretary of State may determine with the approval of the Treasury.

Staff

3

(1) A Special Health Authority may employ such officers as it may determine.

(2) A Special Health Authority may—

(a) pay its officers such remuneration and allowances, and

(b) employ them on such other terms and conditions,

as it may determine.

(3) A Special Health Authority must, in exercising its powers under sub-paragraph (1) or (2), act in accordance with regulations and any directions given by the Secretary of State.

(4) Regulations and directions under sub-paragraph (3) may make provision with respect to any matter connected with the employment by a Special Health Authority of its officers, including in particular provision—

(a) with respect to the qualifications of persons who may be employed as officers of a Special Health Authority,

(b) requiring a Special Health Authority to employ a chief officer and officers of such other descriptions as may be prescribed and to employ, for the purpose of performing prescribed functions of the Special Health Authority or any other body, officers having prescribed qualifications or experience, and

(5) A direction under sub-paragraph (3) may relate to a particular officer or class of officer specified in the direction.

(6) Regulations and directions under sub-paragraph (3) may provide for approvals or determinations to have effect from a date specified in them.

(7) The date may be before or after the date of giving the approvals or making the determinations but may not be before if it would be to the detriment of the officers to whom the approvals or determinations relate.

(8) Regulations may provide for the transfer of officers from one Special Health Authority to another Special Health Authority or to NHS England, and for arrangements under which the services of an officer of a Special Health Authority are placed at the disposal of another Special Health Authority, NHS England or a local authority.

(9) Sub-paragraph (11) applies where the registration of a dental practitioner in the dentists register is suspended—

(a) by an interim suspension order under section 32 of the Dentists Act 1984 (c. 24) (interim orders), or

(b) by a direction or an order of the Health Committee, the Professional Performance Committee or the Professional Conduct Committee of the General Dental Council under any of sections 27B, 27C or 30 of that Act following a relevant determination that that practitioner's fitness to practise is impaired.

(10) For the purposes of sub-paragraph (9), a “relevant determination” that a practitioner's fitness to practice is impaired is a determination which is based solely on—

(a) the ground mentioned in paragraph (b) of subsection (2) of section 27 of the Dentists Act 1984 (deficient professional performance),

(b) the ground mentioned in paragraph (c) of that subsection (adverse physical or mental health), or

(11) The suspension does not terminate any contract of employment made between the dental practitioner and a Special Health Authority, but a person whose registration is so suspended must not perform any duties under a contract made between him and a Special Health Authority which involves the practice of dentistry within the meaning of the Dentists Act 1984.

(12) Directions may be given—

(a) by the Secretary of State to a Special Health Authority to place the services of any of its officers at the disposal of another Special Health Authority or of NHS England,

(b) by the Secretary of State to any Special Health Authority to employ as an officer of the Special Health Authority any person who is or was employed by another Special Health Authority ... and is specified in the direction.

(13) Regulations made in pursuance of this paragraph may not require that all consultants employed by a Special Health Authority must be so employed whole-time.

4

(1) The Secretary of State must, before he makes regulations under paragraph 3, consult such bodies as he may recognise as representing persons who, in his opinion, are likely to be affected by the regulations.

(2) The Secretary of State must, before he gives directions to a Special Health Authority under paragraph 3(12) in respect of any officer of a Special Health Authority—

(a) consult the officer about the directions,

(b) satisfy himself that the Special Health Authority of which he is an officer has consulted the officer about the placing or employment in question, or

(c) in the case of a direction under paragraph 3(12)(a), consult with respect to the directions such body as he may recognise as representing the officer.

(3) But if the Secretary of State—

(a) considers it necessary to give directions under paragraph 3(12)(a) for the purpose of dealing temporarily with an emergency, and

(b) has previously consulted bodies recognised by him as representing the relevant officers about the giving of directions for that purpose,

the Secretary of State may disregard sub-paragraph (2) in relation to the directions.

Miscellaneous

5

Provision may be made by regulations as to—

(a) the appointment and tenure of office of the chairman, vice-chairman and members of a Special Health Authority,

(b) the appointment and tenure of office of any members of a committee or sub-committee of a Special Health Authority who are not members of the Special Health Authority,

(c) the appointment and tenure of office of any members of a joint committee or joint sub-committee including a Special Health Authority who are not members of the Special Health Authority,

(d) the circumstances in which the chairman or vice-chairman or any member of a Special Health Authority may be suspended from office,

(e) the appointment and constitution of committees and sub-committees (and joint committees and joint sub-committees) of (or including) a Special Health Authority (including any such committees consisting wholly or partly of persons who are not members of the Special Health Authority in question), and

(f) the procedure of a Special Health Authority and of such committees and sub-committees as are mentioned in paragraph (e).

6

Regulations made under this Schedule may make provision (including provision modifying this Schedule) to deal with cases where the post of chief officer or any other officer of a Special Health Authority is held jointly by two or more persons or where the functions of such an officer are in any other way performed by more than one person.

7

A Special Health Authority may pay subscriptions, of such amounts as the Secretary of State may approve, to the funds of such bodies as he may approve.

8

A Special Health Authority has power to accept gifts of property (including property to be held on trust, either for the general or any specific purposes of the Special Health Authority or for any purposes relating to the health service).

9

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

10

The proceedings of a Special Health Authority are not invalidated by any vacancy in its membership or by any defect in a member's appointment.

11

(1) A Special Health Authority may—

(a) make available at a hospital for which it has responsibility accommodation or services for patients who give undertakings (or for whom undertakings are given) to pay any charges imposed by the Special Health Authority in respect of the accommodation or services, and

(b) make and recover charges in respect of such accommodation or services and calculate them on any basis that it considers to be the appropriate commercial basis.

(2) A Special Health Authority may exercise the power conferred by sub-paragraph (1) only if it is satisfied that its exercise—

(a) does not to any significant extent interfere with the performance by the Special Health Authority of any function conferred on it under this Act to provide accommodation or services of any kind, and

(b) does not to a significant extent operate to the disadvantage of persons seeking or afforded admission or access to accommodation or services at health service hospitals (whether as resident or non-resident patients) otherwise than under this section.

(3) Before a Special Health Authority decides to make accommodation or services available under sub-paragraph (1), it must consult organisations representative of the interests of persons likely to be affected by the decision.

(4) A Special Health Authority may allow accommodation or services which are made available under sub-paragraph (1) to be so made available in connection with treatment in pursuance of arrangements—

(a) made by a medical practitioner or dental practitioner serving (whether in an honorary or paid capacity) on the staff of a health service hospital,

(b) for the treatment of private patients of that practitioner.

(5) References in this paragraph to a health service hospital include references to such a hospital within the meaning of section 206 of the National Health Service (Wales) Act 2006 (c. 42), but do not include references to a hospital vested in an NHS trust or an NHS foundation trust.

12

(1) Any rights acquired, or liabilities (including liabilities in tort) incurred, in respect of the exercise by a Special Health Authority of any function exercisable by it by virtue of section 7 or section 29 are enforceable by or against that Special Health Authority (and no other body).

(2) This paragraph does not apply in relation to the joint exercise of any functions by a Special Health Authority with another body under section 29(1)(b).

13

Provision may be made by regulations with respect to the recording of information by a Special Health Authority, and the furnishing of information by a Special Health Authority to the Secretary of State, another Special Health Authority or NHS England.

SCHEDULE 7

Requirement for a constitution

1

(1) A public benefit corporation must have a constitution.

(2) As well as any provision authorised or required to be made by this Schedule, the constitution may make further provision (other than provision as to the powers of the corporation) consistent with this Schedule.

2

(1) The constitution must name the corporation and, if the corporation is an NHS foundation trust, its name must include the words “NHS foundation trust”.

(2) If the corporation is an NHS foundation trust, the constitution must specify its principal purpose (as to which, see section 43(1)).

Eligibility for membership

3

(1) The persons who may become or continue as members of a public benefit corporation are—

(a) individuals who live in any area specified in the constitution as the area for a public constituency,

(b) individuals employed by the corporation under a contract of employment and, if the constitution so provides, individuals who exercise functions for the purposes of the corporation otherwise than under a contract of employment with the corporation,

(c) if the constitution so provides, individuals who have attended any of the corporation's hospitals as either a patient or the carer of a patient within a period specified in the constitution.

(2) The constitution may specify one or more areas as areas for public constituencies, each of which must be an electoral area for the purposes of local government elections in England and Wales or an area consisting of two or more such electoral areas.

(3) A person may become or continue as a member of the corporation by virtue of sub-paragraph (1)(b) only if—

(a) he is employed by the corporation under a contract of employment which has no fixed term or has a fixed term of at least 12 months, or

(b) he has been continuously employed by the corporation for at least 12 months or, where he exercises functions for the purposes of the corporation as mentioned in that sub-paragraph, he has done so continuously for such a period.

(4) Chapter 1 of Part 14 of the Employment Rights Act 1996 (c. 18) applies for the purpose of determining whether an individual has been continuously employed by the corporation, or has continuously exercised functions for the purposes of the corporation, as it applies for the purposes of that Act.

(5) The constitution may divide those who come within sub-paragraph (1)(b) into two or more descriptions of individuals.

(6) An individual providing care in pursuance of a contract (including a contract of employment), or as a volunteer for a voluntary organisation, does not come within sub-paragraph (1)(c).

(7) The constitution may divide those who come within sub-paragraph (1)(c) into three or more descriptions of individuals, one of which must comprise the carers of patients.

(8) The constitution may make further provision as to the circumstances in which a person may not become or continue as a member.

Constituencies

4

(1) Members of a public benefit corporation are referred to as follows.

(2) Those who live in an area specified in the constitution as an area for any public constituency are referred to collectively as a public constituency.

(3) Those who come within paragraph 3(1)(b) are referred to collectively as the staff constituency and, if the power in paragraph 3(5) is exercised, each description of members is referred to as a class within that constituency.

(4) Those who come within paragraph 3(1)(c) are referred to collectively as the patient's constituency and, if the power in paragraph 3(7) is exercised, each description of members is referred to as a class within that constituency.

(5) A person who is a member of a constituency, or of a class within a constituency, may not while that membership continues be a member of any other constituency or class.

(6) A person who comes within paragraph 3(1)(b) may not become or continue as a member of any constituency other than the staff constituency.

5

The constitution must require a minimum number of members of each constituency or, where there are classes within the constituency, of each class.

Becoming a member

6

(1) An individual who is eligible to become a member of a public benefit corporation may do so on an application made to the corporation.

(2) The constitution may provide for any individual who is—

(a) eligible to become a member of the staff constituency, and

(b) invited by the corporation to become a member of that constituency (and, where there are classes within the constituency, a member of the appropriate class),

to become a member of the corporation as a member of that constituency (and class) without an application being made, unless he informs the corporation that he does not wish to do so.

(3) The constitution may provide for any individual who is—

(a) eligible to become a member of the patients' constituency (otherwise than as the carer of a patient), and

(b) invited by the corporation to become a member of a specified constituency (and where there are classes within the constituency, a member of the specified class),

to become a member of the corporation as a member of that constituency (and class) without an application being made, unless he informs the corporation that he does not wish to do so.

(4) The constituency and, where applicable, class to be specified—

(a) if he is eligible to be a member of any public constituency, is that constituency,

(b) otherwise, is the patients' constituency and, where applicable, the class of which he is eligible to become a member.

Board of Governors

7

(1) A public benefit corporation has a council of governors.

(2) Only members of the corporation and persons appointed under the following provisions may become or continue as members of the council .

(3) The members of the council other than the appointed members must be chosen by election.

(4) Members of a constituency or, where there are classes within it, members of each class may elect any of their number to be a member of the council.

8

(1) The following may not become or continue as members of the council of governors—

(a) a person who has been made bankrupt or whose estate has been sequestrated and (in either case) has not been discharged,

(aa) a person in relation to whom a moratorium period under a debt relief order applies (under Part 7A of the Insolvency Act 1986),

(b) a person who has made a composition or arrangement with, or granted a trust deed for, his creditors and has not been discharged in respect of it,

(c) a person who within the preceding five years has been convicted in the British Islands of any offence if a sentence of imprisonment (whether suspended or not) for a period of not less than three months (without the option of a fine) was imposed on him.

(2) The constitution may make further provision as to the circumstances in which a person may not become or continue as a member of the council.

9

(1) More than half of the members of the council of governors must be elected by members of the corporation other than those who come within paragraph 3(1)(b).

(2) At least three members of the council must be elected by the staff constituency or, where there are classes within it, at least one member of the council must be elected by each class and at least three members must be elected altogether.

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

(4) At least one member of the council must be appointed by one or more qualifying local authorities.

(5) A qualifying local authority is a local authority for an area which includes the whole or part of an area specified in the constitution as the area for a public constituency.

(6) If any of the corporation's hospitals includes a medical or dental school provided by a university, at least one member of the council must be appointed by that university.

(7) Any organisation specified in the constitution for the purposes of this sub-paragraph may appoint one or more members of the council (but no more than the number specified for those purposes in the constitution).

10

(1) An elected member of the council of governors may hold office for a period of three years.

(2) Such a member is eligible for re-election at the end of that period.

(3) But such a member ceases to hold office if he ceases to be a member of the corporation.

11

The corporation may pay travelling and other expenses to members of the council of governors at rates decided by the corporation.

12

The constitution must provide for the chairman of the corporation or (in his absence) another person to preside at meetings of the council of governors.

13

(1) The constitution must provide for meetings of the council of governors to be open to members of the public.

(2) But the constitution may provide for members of the public to be excluded from a meeting for special reasons.

14

(1) The constitution must make provision as to—

(a) the conduct of elections for membership of the council,

(b) the appointment of persons to membership,

(d) the removal of a member from office.

(2) The constitution may make further provision about the council.

Directors

15

(1) A public benefit corporation has a board of directors.

(2) The constitution must provide for all the powers of the corporation to be exercisable by the board of directors on its behalf.

(3) But the constitution may provide for any of those powers to be delegated to a committee of directors or to an executive director.

16

(1) The board consists of—

(a) executive directors, one of whom is the chief executive (and accounting officer) and another the finance director,

(b) non-executive directors, one of whom is the chairman.

(2) One of the executive directors must be a registered medical practitioner or a registered dentist (within the meaning of the Dentists Act 1984 (c 24)); and another must be a registered nurse or a registered midwife.

(3) A person may not be appointed as an executive director if he is within paragraph 8(1).

(4) A person may be appointed as a non-executive director only if—

(a) he is a member of a public constituency or the patients' constituency, or

(b) where any of the corporation's hospitals includes a medical or dental school provided by a university, he exercises functions for the purposes of that university,

and he is not within paragraph 8(1).

17

(1) It is for the council of governors at a general meeting to appoint or remove the chairman and the other non-executive directors.

(2) Removal of a non-executive director under sub-paragraph (1) requires the approval of three-quarters of the members of the council .

(3) It is for the non-executive directors to appoint or remove the chief executive.

(4) It is for a committee consisting of the chairman, the chief executive and the other non-executive directors to appoint or remove the executive directors.

(5) The appointment of a chief executive requires the approval of the council of governors.

18

(1) It is for the council of governors at a general meeting to decide the remuneration and allowances, and the other terms and conditions of office, of the non-executive directors.

(2) The corporation must establish a committee of non-executive directors to decide the remuneration and allowances, and the other terms and conditions of office, of the executive directors; but the constitution may make provision for those matters to be decided pending the establishment of such a committee.

Initial directors of former NHS trusts

19

(1) This paragraph applies, where the application for authorisation is made under section 33, to the exercise of the powers mentioned in paragraph 17 to appoint the initial non-executive directors and the initial chief executive.

(2) The power to appoint the initial chairman of the corporation must be exercised by appointing the chairman of the NHS trust, if he wishes to be appointed.

(3) The power to appoint the other initial non-executive directors of the corporation must be exercised, so far as possible, by appointing any of the non-executive directors of the NHS trust (other than the chairman) who wish to be appointed.

(4) A person appointed in accordance with sub-paragraph (2) or (3) must be appointed for the unexpired period of his term of office as chairman or non-executive director of the NHS trust; but if, on any such appointment, that period is less than 12 months, he must be appointed for 12 months.

(5) The power to appoint the initial chief executive of the corporation must be exercised by appointing the chief officer of the NHS trust, if he wishes to be appointed.

(6) Sub-paragraphs (a) and (b) of paragraph 16(4) do not apply to the appointment of any initial non-executive director in pursuance of this paragraph; and paragraph 17(5) does not apply to the appointment of the initial chief executive of the corporation in pursuance of sub-paragraph (5).

Register of members etc

20

(1) A public benefit corporation must have—

(a) a register of members showing, in respect of each member, the constituency to which he belongs and, where there are classes within it, the class to which he belongs,

(b) a register of members of the council of governors,

(d) a register of directors,

(e) a register of interests of the directors.

(2) The constitution may make further provision about the registers including, in particular, admission to, and removal from, the registers.

21

The constitution must make provision for dealing with conflicts of interest of members of the council of governors and of the directors.

22

(1) A public benefit corporation must make the following documents available for inspection by members of the public free of charge at all reasonable times—

(a) a copy of the current constitution,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) a copy of the latest annual report,

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) a copy of any order made under section 65D, 65J, 65KC, 65L or 65LA,

(h) a copy of any report laid under section 65D,

(i) a copy of any information published under section 65D,

(j) a copy of any draft report published under section 65F,

(k) a copy of any statement provided under section 65F,

(l) a copy of any notice published under section 65F, 65G, 65H, 65J, 65KA, 65KB, 65KC or 65KD,

(m) a copy of any statement published or provided under section 65G,

(n) a copy of any final report published under section 65I,

(o) a copy of any statement published under section 65J or 65KC,

(p) a copy of any information published under section 65M.

(2) Any person who requests it must be provided with a copy of or extract from any of the above documents.

(3) The corporation is also to make the registers mentioned in paragraph 20 available for inspection by members of the public, except in circumstances prescribed; and, so far as the registers are required to be available—

(a) they must be available free of charge at all reasonable times,

(b) a person who requests it must be provided with a copy of or extract from them.

(4) If the person requesting a copy or extract under this paragraph is not a member of the corporation, the corporation may impose a reasonable charge for doing so.

Auditor

23

(1) A public benefit corporation must have an auditor.

(2) It is for the council of governors to appoint or remove the auditor at a general meeting of the council.

(3) An auditor may be an individual or a firm —

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

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) A person appointed as auditor must be—

(a) eligible for appointment as a statutory auditor (see Part 42 of the Companies Act 2006),

(aa) eligible for appointment as a local auditor (see Part 4 of the Local Audit and Accountability Act 2014), or

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(6) The corporation must establish a committee of non-executive directors as an audit committee to perform such monitoring, reviewing and other functions as are appropriate.

(7) In this paragraph—

“firm” has the same meaning as in section 1261(1) of the Companies Act 2006.

Accounts

24

(1) A public benefit corporation must keep proper accounts and proper records in relation to the accounts.

(1A) NHS England may with the approval of the Secretary of State give directions to the corporation as to the content and form of its accounts.

(2) The accounts must be audited by the corporation's auditor.

(3) But the Comptroller and Auditor General may examine—

(a) the accounts,

(b) the records relating to them, and

(4) If trustees are appointed under section 51, the Comptroller and Auditor General may also examine—

(a) the accounts kept by the trustees,

(b) any records relating to them, and

(4A) The auditor must, in carrying out functions in relation to the accounts—

(a) comply with the code of audit practice applicable to the accounts that is for the time being in force (see Schedule 6 to the Local Audit and Accountability Act 2014), and

(b) have regard to guidance issued by the Comptroller and Auditor General under paragraph 9 of that Schedule (as it has effect by virtue of paragraph 10(6) of that Schedule).

(4B) The auditor of the accounts must comply with any directions given by the Secretary of State as to arrangements to monitor the standard of the work of auditors in the performance of audits under this paragraph (including arrangements to inspect that work).

(4C) The arrangements mentioned in sub-paragraph (4B) may include arrangements made by NHS England or by any other person the Secretary of State considers appropriate.

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

25

(1) A public benefit corporation must prepare in respect of each financial year annual accounts in such form as NHS England may with the approval of the Secretary of State direct.

(1A) NHS England may with the approval of the Secretary of State direct a public benefit corporation—

(a) to prepare accounts in respect of such period or periods as may be specified in the direction;

(b) that any accounts prepared by it by virtue of paragraph (a) are to be audited in accordance with such requirements as may be specified in the direction.

(2) In preparing its annual accounts or in preparing any accounts by virtue of sub-paragraph (1A)(a), the corporation must comply with any directions given by NHS England with the approval of the Secretary of State as to—

(a) the methods and principles according to which the accounts must be prepared,

(b) the content and form of the accounts.

(3) In determining the form and content of the annual accounts, or of any accounts to be prepared by it by virtue of sub-paragraph (1A)(a), NHS England must aim to ensure that the accounts present a true and fair view.

(4) The corporation must—

(a) lay a copy of the annual accounts, and any report of the auditor on them, before Parliament, and

(b) ... send copies of those documents to NHS England within such period as NHS England may direct.

(4A) The corporation must send to NHS England within such period as NHS England may direct—

(a) a copy of any accounts prepared by the corporation by virtue of sub-paragraph (1A)(a), and

(b) a copy of any report of an auditor on them prepared by virtue of sub-paragraph (1A)(b).

(5) The constitution must provide for the functions of the corporation under this paragraph to be delegated to the accounting officer.

(6) In this paragraph and paragraph 27 “financial year” means—

(a) the period beginning with the date on which the corporation is authorised under section 35 and ending with the next 31st March, and

(b) each successive period of twelve months beginning with 1st April.

Annual reports and forward plans

26

(1) A public benefit corporation must prepare annual reports and send them to NHS England.

(1A) The reports must, in particular, review the extent to which the public benefit corporation has exercised its functions in accordance with the plans published under—

(a) section 14Z52 (joint forward plans for integrated care board and its partners), and

(b) section 14Z56 (joint capital resource use plan for integrated care board and its partners).

(1B) The reports must, in particular, review the extent to which the public benefit corporation has exercised its functions consistently with NHS England’s views set out in the latest statement published under section 13SA(1) (views about how functions relating to inequalities information should be exercised).

(2) The reports must give—

(a) information on any steps taken by the corporation to secure that (taken as a whole) the actual membership of any public constituency and (if there is one) of the patients' constituency is representative of those eligible for such membership,

(aa) information on any occasions in the period to which the report relates on which the council of governors exercised its power under paragraph 10C,

(ab) information on the corporation's policy on pay and on the work of the committee established under paragraph 18(2) and such other procedures as the corporation has on pay,

(ac) information on the remuneration of the directors and on the expenses of the governors and the directors,

(b) any other information NHS England requires.

(2A) Before imposing a requirement under sub-paragraph (2)(b) that NHS England considers is sufficiently significant to justify consultation, NHS England must consult such persons as it considers appropriate.

(3) It is for NHS England to decide—

(a) the form of the reports,

(b) when the reports must be sent to it,

27

(1) A public benefit corporation must give information to NHS England as to its forward planning in respect of each financial year.

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

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

Meeting of board of governors to consider annual accounts and reports

28

(1) The following documents must be presented to the council of governors of a public benefit corporation at a general meeting—

(a) the annual accounts,

(b) any report of the auditor on them,

(2) Nothing in sub-paragraph (1) prevents the council of governors from holding a general meeting more than once a year.

Instruments etc

29

(1) The constitution must make provision for the authentication of the fixing of the corporation's seal.

(2) A document purporting to be duly executed under the corporation's seal or to be signed on its behalf must be received in evidence and, unless the contrary is proved, taken to be so executed or signed.

SCHEDULE 8

Membership

1

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

Tenure of office

2

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

Remuneration and pensions

3

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

Staff

4

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

Superannuation

5

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

Procedure

6

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

Delegation of functions

7

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

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.