This circular details the allocation of capital resources available for Hospital and Community Health Services (HCHS) for the period 2003-04 to 2005-06. This funding is provided to deliver the priorities in the planning guidance. In line with the principle of devolution of responsibility and resources capital allocations are being made directly to NHS trusts, Primary Care Trusts and Strategic Health Authorities: allocations of operational (formerly block) capital are being made directly to NHS trusts and PCTs. The allocations have been informed by a formula that distributes resources broadly on the basis of depreciation charges. Average increases will be 10% a year allocations of strategic (formerly discretionary) capital are being made directly to Strategic Health Authorities. The allocations have been informed by a capitation based formula the Local Capital Modernisation Fund is being replaced by a £100 million Access Fund which will be allocated to Strategic Health Authorities.
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