The health department is poised to scrap the controversial scheme that has failed to stem the rise of the NHS's £6bn drugs bill and replace it with strict price controls.
Local government minister Hilary Armstrong has urged councils to refurbish rather than build new homes with the new money from the Comprehensive Spending Review.
The NHS Executive is to clamp down on health authorities and trusts that do not put enough cash aside to cover clinical negligence claims against them.
Nurses, midwives and non-clinical NHS staff could be offered large pay increases soon, despite Gordon Brown's insistence that he will keep the lid on public sector pay.
