Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, with reference to the New Hospital Programme: Plan for implementation, what percentage of the New Hospital Programme for the Royal Berkshire Hospital is expected to come from public dividend capital.

My Rt Hon. Friend, the Secretary of State for Health and Social Care, set out a credible and deliverable plan for the new hospital schemes in the New Hospital Programme (NHP) on 20 January 2025, following the conclusion of the review of the NHP. The plan for implementation was laid in the House Library and published on the GOV.UK website, and is available at the following link:

https://www.gov.uk/government/publications/new-hospital-programme-review-outcome

As confirmed in this publication, the scheme for Royal Berkshire Hospital is in wave three of the NHP and is now expected to commence construction of the main build between 2037 to 2039.

Through the business case process, the trust will set out the costs and the source of funding for their new hospital scheme, including the amounts expected to come from Public Dividend Capital as well as any charitable donations or land sales, if relevant. The standard process for confirming the total funding amount for major infrastructure projects involves the review and approval of a Full Business Case. The current estimated cost of the scheme, as of January 2025, is over £2 billion.

In the 2024 Autumn Budget, my Rt. Hon. Friend, the Chancellor of the Exchequer, announced an increase in health capital spending, to £13.6 billion in 2025/26, including over £1 billion to make inroads into the backlog of critical maintenance and tackle dangerous Reinforced Aerated Autoclaved Concrete. Further details on this funding will follow at the earliest opportunity, including local capital allocations and national capital programmes for 2025/26, as part of the National Health Service’s planning guidance. Budgets for future years will be confirmed as part of the upcoming Spending Review. The state of the NHS estate and safety impacts will be considered as part of this.