Regulation 5 Amendment of regulation 25 of the principal Regulations

For paragraph (3) of regulation 25 of the principal Regulations (savings from the allotted sum) substitute—

“(3)

The Health Authority shall consent to the application of any part of an allotted sum for any of the purposes specified in paragraph (2)(a) to (f) or paragraph (2A) if it is satisfied—

(a)

that the proposed expenditure would be for the benefit of the patients of the members of the practice and would represent value for money; and

(b)

that the financial position of the members of the practice in relation to the allotted sum is such that, if the proposed expenditure were incurred, the savings then left to them would not be less than the total amount of any overspends which it is reasonable to predict for the relevant financial years.

(3A)

In paragraph (3)—

• “overspend” means any amount by which the liabilities incurred by the members of a fund-holding practice in any financial year other than for purposes for which Health Authority consent is required under this regulation exceed the proposed allotted sum for that practice for that financial year (or, where the proposed allotted sum has been varied in accordance with regulation 18, the latest variation); and

• “relevant financial years” means—

  1. (i)

     the financial year in which Health Authority consent to the proposed expenditure is sought; and

  2. (ii)

     where the accounts for the previous financial year have not yet been audited as mentioned in paragraph (2), that financial year (except where that year is the year beginning on 1st April 1996).”.