New law provides local health boards with greater financial flexibility

A new Welsh Labour Government law enabling local health boards in Wales to benefit from greater financial flexibility  has been passed by the National Assembly for Wales.

The National Health Service Finance (Wales) Bill removes the existing duty on local health boards to break even annually and replaces it with a three year rolling financial duty together with a tolerance threshold, as permitted by Welsh Ministers.

Health Minister Mark Drakeford said the new law provides local health boards with greater financial flexibility, but stressed that it does not provide any extra money. As part of the new arrangements, local health boards must submit robust three year service plans setting out how they will comply with their financial duties whilst also improving the health of, and provision of healthcare to, the people they are responsible for.