21 November 2003
There will be a major review of the impact of the first foundation trusts, the government announced this week in a further package of concessions on the controversial initiative.
Health Secretary John Reid announced the review in the Commons on November 19 as he urged Labour backbenchers to support foundation trusts during a crucial debate on the Health and Social Services Bill. MPs later voted by 302 votes to 285 to reinstate clauses in the Bill that will establish the new not-for-profit organisations.
The clauses had been removed in the Lords and although the Bill must now return there, the government believes it is unlikely peers will reject the Commons' will a second time.
The review, which will take place between autumn 2004 and autumn 2005, will be carried out by the Commission for Healthcare Audit and Inspection (Chai), which is itself being established by the Bill. Around 50 foundation trusts will be established by autumn next year and all will be included in the study.
'I have asked Chai, which will be accountable to Parliament, not me, to assist me in this review. And I will not pass a new application for foundation status to the regulator [of foundation trusts] during this period,' the health secretary told MPs.
Reid unveiled other concessions. He confirmed that foundation trusts would not necessarily implement the new Agenda for Change pay system earlier than other trusts, a move first revealed in Public Finance two weeks ago.
The government had pressed on with the foundation initiative despite widespread opposition from backbench Labour MPs, unions, doctors, the Conservatives and the Liberal Democrats.
One leading opponent, Commons health committee chair David Hinchliffe, said the measure had not been given sufficient parliamentary scrutiny.
He added that the first wave of 25 trusts would spend £2.5m on giving local people a say in their management, while the new regulator would cost £2.3m a year. 'That's £5m of scarce NHS money that should be spent on treating people but is being wasted on a half-baked idea,' he said.
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