The Welfare State We're In, The website of the book by James Bartholomew
March 30, 2005
Wednesday
The NHS has been living off expropriated capital stock

This is from a Sun online article about a Sky News question and answer session with Tony Blair about healthcare.

Mr Blair also defended the Government’s Private Finance Initiative, insisting: "We have got to work out how we fund this in a way that is sustainable for the future."

Hospitals used to be completed "over budget and behind time" but were now completed on time and on budget, said Mr Blair.

He added: "Since the NHS was created until just recently, over half the NHS stock was actually built before the NHS began.

"Within a few years, as a result of PFI, it’s going to be the other way round."

This is about as near as any government gets to admitting that the NHS depends heavily on the premises and land that were established before the NHS existed at all. In fact, of course, Mr Blair understates the case. Having expropriated an enormous amount of land and buildings from charities and municipalities, the NHS has sold off literally hundreds of hospitals.

It then spent the money raised to finance current expenditure, instead of renewing the capital stock. And until it started letting private sector companies do much of the work, it was particular incompetent and wasteful in its new projects - as even Mr Blair now acknowledges.

My thanks to a visitor to this site for pointing out Mr Blair's remarks.

Posted by James Bartholomew • Indexed in NHS

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