NHS ends controversial accounting regime

NHS ends controversial accounting regime

Notorious 'double whammy' accounting rules to end for NHS trusts

The NHS has ended its controversial accounting regime that hit NHS trusts
twice if they posted a deficit.

David Nicholson,
Department
of Health
chief executive, said the end of the regime followed
Audit Commission recommendations to make a change. Reversing the regime, known
as resource accounting and budgeting,
ploughs £178m back into local NHS.

The Audit
Commission
said the old accounting rules were unfair because of the
‘double whammy’ effect under which overspending trusts not only had to pay back
their debts but received less income the following year as well.

‘The majority of NHS trusts have improved their financial performance over
the last year, meaning we are now in a position to complete modernisation of the
NHS financial regime,’ said Nicholson.

Overall, the NHS is expected to post a £13m surplus for the financial year
ending April, compared with a £547m deficit a year ago.

Further reading:

Moves to heal NHS financial ills

NHS deficit accounting faces surprise axe

Government promises to fix NHS accounting
regime

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource