| answer text |
<p>The Department provides loans to National Health Service trusts and foundation
trusts for both capital investment and to support revenue expenditure.</p><p> </p><p>Interim
revenue loans are provided to NHS providers to help protect the continuity of patient
services and to ensure those organisations in financial deficit or distress have time
and space to develop plans for return to a sustainable financial path.</p><p> </p><p>Interest
rates on loans vary based on the purpose of the loan and provider’s circumstances.
The same interest rates are applied to NHS trusts and foundation trusts irrespective
of region.</p><p> </p><p>National Loan Fund rates are applied to normal course of
business loans which includes capital investment. For those that are in receipt of
interim financial support, the interest rates charged on loans are either 1.5%, 3.5%
or 6%. The 6% rate is reserved for those trusts in Financial Special Measures (FSM).
However, those that deliver three months of NHS Improvement benchmarked performance
while in FSM are reduced to 3.5% on further loans. Interest earned on loans by the
Department is not lost to the NHS - it is channelled back into the NHS through the
annual funding allocation made through the NHS England Mandate.</p><p> </p><p>The
total amount of loan repayments and interest paid in London and England in each year
since 2015-16 are set out below:</p><p> </p><table><tbody><tr><td colspan="3"><p>London</p></td></tr><tr><td><p>
</p></td><td><p>Loan repayments</p></td><td><p>interest paid</p></td></tr><tr><td><p>2017-18</p></td><td><p>£66,731,745</p></td><td><p>£25,218,269</p></td></tr><tr><td><p>2016-17</p></td><td><p>£190,921,276</p></td><td><p>£19,100,003</p></td></tr><tr><td><p>2015-16</p></td><td><p>£275,996,532</p></td><td><p>£8,497,917</p></td></tr></tbody></table><table><tbody><tr><td
colspan="3"><p>England</p></td></tr><tr><td><p> </p></td><td><p>Loan repayments</p></td><td><p>interest
paid</p></td></tr><tr><td><p>2017-18</p></td><td><p>£204,785,254</p></td><td><p>£90,458,829</p></td></tr><tr><td><p>2016-17</p></td><td><p>£641,465,713</p></td><td><p>£63,883,250</p></td></tr><tr><td><p>2015-16</p></td><td><p>£816,627,333</p></td><td><p>£32,722,964</p></td></tr></tbody></table><p>
</p><p> </p><p> </p>
|
|
