The recently published Naylor Report, based on analysis by transnational company Deloitte, says the NHS needs £10 billion to provide the facilities (such as new models of care) required by NHS England’s Five Year Plan, as well as £5 billion (at least) for backlog maintenance. The report suggests finding this money through the rapid and wide scale disposal of NHS buildings and land (potentially £5.7 billion of NHS assets), as well as through Treasury funding and the use of private finance.
The Department of Health already receives an annual dividend from NHS Trusts of 3.5% of the value of their assets, but the review recommends going further by blocking trusts from getting capital funding grants, loans or private finance unless they set targets for selling land and buildings.
NHS property and land in London is particularly at risk because it will be of the highest value. (See our page on PropCo and the Naylor Review for more details)