Future Fit consultation 'not fully transparent' over finances, says Telford council leader
The leader of Telford & Wrekin Council has called on the consultation over the future of Shropshire's hospital services to be completely transparent about where the money behind the plans to change these services will come from.
Councillor Shaun Davies says the vast majority of funding for the Future Fit plans will be a costly loan.
He says people are being asked to respond to the public consultation without having all of the facts.
Health bosses say the precise funding nature of the £312 million will not be finalised until the final business case.
But they say that up to £200m will come from public dividend capital and the remainder will come from the trust’s own capital resources, or land sales, and at least one tranche will come from private finance.
Councillor Davies said: “Reading the consultation, most people will assume this funding is a grant with no future consequences.
“It’s not. The vast majority of this will be a very expensive loan which will have to be paid back.
“People are being asked to respond to a consultation without the full facts.”
See also:
The Future Fit plan aims to centralise pre-arranged operations at one of the county’s two main hospitals, with emergency care at the other.
Two options are being consulted on, with the preferred option placing the county's emergency centre at Royal Shrewsbury Hospital.
But Councillor Davies says option two – which sites the emergency department at Telford's Princess Royal Hospital – would cost £63 million less.
The council says the difference in the cost of borrowing less money would mean at least £3.3 million each year could be spent on more GPs and nurses.
Councillor Davies added: “In February of this year, there was confirmation that Future Fit was getting £312 million to pay for the scheme, paving the way for the consultation to begin.
“No-one, not local health bosses, nor the Department of Health which announced the funding, said this would be a loan.
“It was only this week, three months after that announcement and only after pressure from this council, that health bosses publicly confirmed that most of the money is indeed a loan.
“The truth is – of the £312m, £200m would come public dividend capital, a loan, while at least another £50-100 million would come from private finance – again loans.
"Given the recent history of private finance in the public sector, people must be asking whether this is what they want for their hospital services.
“None of this is clear in the consultation documents and the public have a right to know.
"The NHS will have to pay the money back but option one would saddle them with many millions of more pounds in interest payments for many decades to come than option two.
"This is money that could be spent on more GPs and nurses.
“Our preferred option, option two would cost £63 million less to deliver the same services and save the NHS at least £3.3million a year in interest payments.
“All we have ever asked for is a legal, fair and transparent process. It’s very worrying that now the consultation is underway we again see that Future Fit are not being clear on key issues that are fundamental for people to be able to give an informed view in the consultation.
“Sadly health bosses have put themselves into a corner about the funding – it’s vital that they now be absolutely crystal clear so that the public know what is being asked of them in this consultation.
“We will continue to fight for answers.”
The Future Fit public consultation launched on May 30 and will run for 14 weeks.
