NHS trusts eye council borrowing
Monitor’s compliance board committee has deferred its decision, in order to account for advice from Treasury – which, if approved, could see an influx of foundation trusts making similar requests.
Mark Berry of lawyers, Norton Rose said: "I think extending borrowing limits may become a bit of a theme, following it up with cost-cutting."
According to the regulator, Monitor assesses "each case on its own merits according to the risks identified by the local circumstances" and the Treasury needs to evaluate the financial ‘value-for-money’ behind the borrowing extension.
"As the scheme is considered novel, contentious and repercussive under HM Treasury’s Managing Public Money guidance, the Department of Health undertook a public purse VFM analysis of the scheme," said a spokeswoman for the regulator. "We expect to receive HMT advice shortly both on the VFM of the scheme and the extent to which it may be repercussive."