The following update on the New Hospital Programme has been released by Health Secretary Wes Streeting:
"This government inherited a programme that was unfunded beyond 2025, which meant schemes did not have the funding confirmation they needed to deliver.
The review was conducted by DHSC and NHS England, with support and input from HMT, using existing and, where possible, publicly available information. The review fed into the Spending Review process for the Autumn 2024 Budget, where decisions on the outcome were taken in the round.
We are committing to deliver all schemes that have previously been included as part of the NHP.
The 7 hospitals constructed primarily using reinforced autoclaved aerated concrete (RAAC) will continue to be prioritised in the programme and we will continue to address the highest risk elements as early as possible.
The government has agreed a set of realistic and deliverable assumptions around the ongoing funding envelope that will enable the programme to plan sustainably for the long term and support schemes in rolling waves of investment. The exact profile of funding will be confirmed in rolling 5-year waves at regular Spending Reviews (as with all government capital budgets in the future). Once the programme has reached a steady state in the early 2030s it can assume an overall funding envelope of £15 billion in each 5-year funding window.
Following the review, work was undertaken to set out a realistic delivery plan. The NHP will now be delivered through consecutive waves of investment.
Each wave will set construction start dates for schemes over a 5-year period.
Each wave will comprise a group of hospital schemes that will start main construction within that period, but may complete in a subsequent wave.
Schemes starting in subsequent waves will have opportunities to progress work to prepare them for construction, subject to meeting value for money criteria. This may include business case development and critical work such as securing planning permission. In some cases, this may include early construction activity that is required to prepare sites such as multi-storey car parks, energy centres and demolition activity."
Date: 22 January