CfH to spend a further £6.4bn by 2011

Connecting for Health will spend a further £6.4bn over the next four years to 2011, according to figures given by health minister Ben Bradshaw.

In response to a parliamentary question by shadow health minister Andrew Lansley, Bradshaw provided a summary of planned spending by CfH over each of the next four years.

Revenue expenditure is projected to peak at £853m in 2008-09, while capital expenditure is predicted to peak the following year at £1049m

Asked for the expected costs of CfH in each financial year from 2007-08 to 2010-11, Bradshaw revealed the revenue and costs allocated to the agency in the Chancellor’s comprehensive spending review.

The figures reveal that costs will rise over the next four financial years in both revenue and capital terms, as the programme continues to be deployed nationally.

Revenue spending for this financial year is forecast at £500m. This will increase to £853.2m the following year, and then fall again to £786.9m by 2009-10.

Capital spending will also increase following last year’s record £336m spend.

The government forecasts CfH to spend £826m on capital expenditure in both this year next, rising to £1.05bn in 2009-10, before falling again to £835.8m the following year.

Bradshaw said Connecting for Health would use the funds “both for ensuring delivery of the IT systems for the National Programme for Information Technology, and for maintaining the critical business systems previously provided to the National Health Service by the former NHS Information Authority.”

These figures were “subject to revision as the agency responds over time to the evolving IT needs of the NHS,” he added.

The NHS Information Management and Technology Investment Survey 2006 recently found that in total, IT investment accounted for 38.39% of the NHS capital budget for 2006/07 - a 15% increase from the 2005-06 spend.