Statement on the Autumn Budget
The Chancellor of the Exchequer Rachel Reeves today (30 October 2024) delivered this Government's first Budget, including new investment in the NHS and a commitment to continue the 'delivery of the New Hospital Programme on a more sustainable and deliverable footing'.Commenting on implications for hospital redevelopment, Chief executive of Imperial College Healthcare NHS Trust, Professor Tim Orchard, said: “There are some positive signs for the future of hospital redevelopments in today’s Budget but no detail yet on what it might mean for the vast majority of individual schemes, including our three schemes in the New Hospital Programme: St Mary’s, Charing Cross and Hammersmith.
“We welcome the commitment in the Budget to more transparent and longer-term capital planning and the changes in fiscal rules that offer the potential to invest more in NHS infrastructure. The recognition of the huge potential for life sciences to contribute economic as well as health benefits is also good news for redevelopments, like ours, that boost local life sciences partnerships.
"We welcomed the review of the New Hospital Programme when it was announced in the summer, as it is vital that we get clarity on funding and approval processes. We now need the outcome of the review as soon as possible, with the Chancellor today indicating that there would be further details in the coming weeks.
“It is increasingly difficult to manage the impacts of our crumbling estate, parts of which are over 180 years old. Despite spending up to £30 million a year on essential maintenance, building failures are increasingly common, especially at St Mary’s, the most urgently needed of our schemes. For instance, at St Mary’s, we have had to close clinical areas in one of our oldest buildings for urgent structural maintenance. Just before that, one of our operating theatres was out of action due to flooding caused by roof problems. And, as London’s busiest major trauma centre, we are heading into another winter when it is business as usual to have every one of our inpatient beds occupied.
“We have been awaiting the release of funding to begin the next stage of design and planning (RIBA Stage 2) for St Mary’s. We are essentially on pause until then, with every six month delay costing us an additional £63-73 million due to inflation, productivity, and benefits-realisation impacts.”
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