Commentary on Sections Financial arrangements: England and Wales Section 9: Funding of Local Health Boards
68.Section 9(1) provides for LHBs to be funded directly by the Assembly.  The provisions in the new section 97F (1), (2), (7), (8) and (9) mirror the existing provisions in section 97 for the funding of HAs.  They cover respectively: the funding of LHBs; taking account of general Part 2 expenditure in determining amounts to be allotted towards main expenditure; the variation of allotments in the course of a year; the earmarking of allotments for a particular purpose, and the payment of capital charges; and the keeping of records.
69.Section 97F (3) to (6) is a new provision to allow performance payments direct to LHBs.  The provision allows the Assembly to increase the allotments made to a LHB if they have, over a period notified to the LHB, satisfied objectives notified as objectives to be met, or performed well against criteria notified to them as criteria relevant to their satisfactory performance of functions.  The additional sums may be subject to conditions.  If those conditions are not met the Assembly may reduce the LHB’s allotment, in the current year or following years.
70.Section 97G is a new provision which specifies the financial duties of LHBs. It places a duty on LHBs not to spend more than the sum of the amount allotted to them by the Assembly (the cash limit) and any other receipts.  It enables the Assembly to give directions to LHBs to ensure they comply with their financial duty. These provisions mirror those in respect of HAs in section 97A of the 1977 Act.
71.Section 97H extends the setting of resource limits to LHBs.