20 September 2002
Late last week, NHS Estates, the arm's-length Department of Health agency charged with selling off unneeded land and buildings, announced that £400m of surplus property will be sold under a public-private partnership.
A consortium made up of property developer Miller Ventures and the Bank of Scotland has been chosen as preferred partner for the deal, which will also see NHS Estates' consultancy arm, Inventures, transfer to the consortium. The NHS will take a share of the consortium's profits.
But this week, the Commons' Public Accounts Committee said it had received 'insufficient assurance' on the benefits of the sale. The MPs will carry out a separate inquiry into the deal once it has received a report from the National Audit Office.
The 100 sites in the sale are the final and biggest single chunk of the NHS-retained estate to be sold. Individual trusts can sell off their own surplus land and property and the MPs said these sales could reach £700m in the three years to March 2003. However, the PAC questioned whether disposal was the best long-term option for trusts.
Committee chair Edward Leigh said NHS operational needs could change over the coming years as the service expands. Trusts could find a need for land or buildings that are currently unused and should consider leasing property that is deemed surplus.
'Clearly at a time when spending on the NHS is increasing it is important that trusts think strategically about their estate. Short-term gains from sales could be costly longer term as operational needs change, particularly in terms of accommodation for nurses and other essential workers,' he said.
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