The following Statement was made in the House of Commons on Monday 20 January.
“With permission, Mr Speaker, I would like to make a Statement on the new hospital programme.
Of all the damage that the Conservative party did during their time in office—the broken public finances, the broken economy, the broken NHS—perhaps the most egregious was the broken trust between the British people and their Government, not just through their scandals or by breaking the rules they imposed on the rest of the country but by making promises that they never intended to keep.
In 2019, the Conservatives told the British people that they would build 40 new hospitals over the coming decade, but there were never 40 new schemes and many of them were extensions or refurbishments. Put simply, they were not all new, some of them were not hospitals, and there were not 40 of them. Five years passed, start dates were delayed, spades remained out of the ground, and it became clear the announcement was a work of fiction.
Yet what did the Conservative Party manifesto at last year’s general election say on the matter? It said:
‘We will invest in more and better facilities, continuing to deliver 40 new hospitals by 2030’.
They repeated the promise even though the Department of Health and Social Care was putting contracts out to tender for hospital building that ran until 2035. They repeated that commitment even after the National Audit Office found that the Government
‘will not now deliver 40 new hospitals by 2030’.
They repeated it even though the Government’s own infrastructure watchdog deemed it to be ‘unachievable’. No one thought that the promise would be met, yet the Conservative Party made it anyway, time and again.
Despite knowing this, when I walked into the Department of Health and Social Care on 5 July, what I discovered shocked me. The scheme was not just years behind schedule; the money provided by the previous Government was due to run out in March, just weeks from today. On 25 May 2023, the then Health and Social Care Secretary, the right honourable Member for North East Cambridgeshire, Steve Barclay, stood at this Dispatch Box and told the House:
‘Today’s announcement confirms more than £20 billion of investment’.—[Official Report, Commons, 25/5/23; col. 480.]
The truth is that no funding had been set aside for future years; the money simply was not there. This was a programme built on the shaky foundation of false hope.
If I was shocked by what I discovered, patients ought to be furious—not just because the promises made to them were never going to be kept but because they can see when they go into hospital how badly the health service needs new buildings. The NHS is quite literally crumbling. The independent investigation of the noble Lord, Lord Darzi, found that the NHS was starved of capital investment by the previous Government. Its outdated estate has hit productivity, with services disrupted at 13 hospitals every day during 2022-23. I have visited hospitals where the roof has fallen in and where pipes regularly leak and even freeze over in winter. The Conservatives literally did not fix the roof when the sun was shining.
On Thursday, the Infrastructure and Projects Authority published its annual report for 2023-24. Its assessment of the new hospital programme read:
‘There are major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable. The project may need re-scoping and/or its overall viability reassessed’.
That is what this Government have done.
Our review of the new hospital programme and the announcement I am making today will do two things: first, it will put the programme on a firm footing with sustainable funding, so that all the projects can be delivered; and, secondly, it will give patients an honest, realistic and deliverable timetable that they can believe in. This Labour Government are rebuilding our NHS, and as we do so, we will also rebuild trust in politics.
The seven hospitals built wholly or mostly from reinforced autoclaved aerated concrete—RAAC—were outside the scope of the review. These will be rebuilt at pace to protect people’s safety. Also out of scope were the hospitals already under construction or with an approved business case, where building works have continued without delay.
Working closely with my right honourable friend the Chief Secretary to the Treasury, we have secured five-year waves of investment, backed by £15 billion of investment over consecutive waves, averaging £3 billion a year. That funding is in addition to the £1 billion that the Chancellor announced at the Budget to tackle dangerous RAAC and the backlog of critical maintenance, repairs and upgrades across the NHS estate. It is also in addition to the £1.5 billion we are investing in new surgical hubs, diagnostic scanners and beds. Together, it forms part of the £13.6 billion of capital investment announced at the Budget, which is the largest capital investment in our National Health Service since Labour was last in office.