Website of the Department of Health

Key features of the arrangements

Department of Health

• The Department of Health’s (DH’s) delegated limit for the approval of full business cases (FBCs) for public capital financed builds, PFI and IT schemes is £100m.  HM Treasury approval is required for cases of over £100m.

SHAs

• SHAs may approve all Trust and PCT business cases up to £35m. This limit applies to all build, PFI and IT contracts and all investments financed through lease transactions.
• SHAs have a delegated limit of £5m for their own business cases.

Best performing trusts

• Trusts with performance ratings Fair & Excellent, Good & Good, Good & Excellent and Excellent & Excellent enjoy delegated limits of between £8m and £12m, dependent on turnover, for build, PFI, IT and equipment investments, and property leases.

Medium performing trusts

• Trusts with performance ratings Weak & Good, Weak & Excellent, Fair & Fair, Fair & Good enjoy delegated limits of between £6m and £8m, dependent on turnover, for build, PFI, IT and equipment investments, and property leases.

Lowest performing trusts

• Trusts with performance ratings of Weak & Weak and Weak & Fair have a basic delegated authority of £3m for build schemes (PFI and publicly funded), IM&T, equipment investments and property leases.
• This limit applies for these Trusts regardless of turnover.

Any queries on this guidance should be addressed as follows:

General queries regarding this guidance
Ben Masterson, FID  CIB
Room 3W07 Quarry House, Quarry Hill, Leeds LS2 7UE
Telephone 0113–254-5550

PFI and Public Construction and IM&T Schemes
Susan Peak, FID  CIB
Room 3W07 Quarry House, Quarry Hill, Leeds LS2 7UE
Telephone 0113–254-5305