ANNEX A: OUTLINE OF THE EXISTING LAW Existing legislation about the NHS Health and Medicines Act 1988
374.Section 7 of the Health and Medicines Act 1988 extended the Secretary of State’s powers for financing the NHS, by providing that he had powers to undertake a range of activities (for example, supplying goods or services, or exploiting intellectual property) in order to make more income available for improving the health service . The exercise of these powers is however limited by the provisos in subsection (8); in particular that anything he proposes to do will not to a significant extent interfere with the performance by him of any duty imposed on him by the 1977 Act.
375.The Secretary of State has directed Health Authorities that they may exercise these powers. NHS trusts and PCTs exercise similar powers by virtue of paragraph 15 of Schedule 2 to the 1990 Act and section 18A (5) of the 1977 Act (inserted by section 5 of the Health Act), respectively. Authorities and trusts are however subject to any directions the Secretary of State may make under section 17 of the 1977 Act about the exercise of such powers.