Part 1: Health Service in England: Integration, Collaboration and Other Changes NHS Foundation Trusts Section 62: Capital Spending Limits for NHS Foundation Trusts
This section amends the NHS Act 2006, to give NHS England the power to set a capital expenditure limit on an NHS Foundation Trust.
	Subsection (2) inserts sections 42B and 42C into the NHS Act 2006.
	Section 42B sets out how the limit to capital expenditure will be placed on a Foundation Trust, the process and defines "capital expenditure".
Subsections (1) and (2) gives NHS England the power to make an order to set a capital expenditure limit on an individually named NHS Foundation Trust for a single financial year. The order must state the financial year and the trust which it applies to, as well as the expenditure limit.
Subsections (3) and (4) places a duty on NHS England to consult with the Foundation Trust before the order is made and requires NHS England to publish the order so that it is in the public domain.
Subsection (5) allows NHS England to set a limit either during, or before the financial year to which the limit relates.
Subsection (6) imposes a statutory duty on the NHS Foundation Trust not to exceed the capital expenditure limit as specified in the order.
Subsection (7) defines capital expenditure in line with how capital is reported in the Foundation Trusts annual accounts. Capital expenditure being that expenditure which falls to be capitalised in its annual accounts. This will cover assets with a life of greater than 1 year such as acquiring, or upgrading property, technology, or equipment.
	Section 42C(1) requires NHS England to produce guidance on the use of its power to make orders under section 42B, and subsection (2) requires NHS England to consult with the Secretary of State before publication of such guidance (or revised guidance). The guidance will set out information about the circumstances in which NHS England is likely to make an order to set a capital expenditure limit for a Foundation Trust and how it will establish the limit.
	Section 42C(3) requires NHS England to have regard to their own guidance when deciding whether to issue any orders to limit capital expenditure by Foundation Trusts.
	Section 42C(4) provides that order made by NHS England under section 42B will not be a statutory instrument.