PARLIAMENTARY DEBATE
New Hospital Programme Review - 20 January 2025 (Commons/Commons Chamber)
Debate Detail
Of all the damage that the Conservative party did during their time in office—the broken public finances, the broken economy, the broken NHS—perhaps the most egregious was the broken trust between the British people and their Government, not just through their scandals or by breaking the rules they imposed on the rest of the country, but by making promises that they never intended to keep.
In 2019, the Conservatives told the British people that they would build 40 new hospitals over the coming decade, but there were never 40 new schemes and many of them were extensions or refurbishments. Put simply, they were not all new, some of them were not hospitals, and there were not 40 of them. Five years passed, start dates were delayed, spades remained out of the ground, and it became clear the announcement was a work of fiction.
Yet what did the Conservative party manifesto at last year’s general election say on the matter? It said:
“We will invest in more and better facilities, continuing to deliver 40 new hospitals by 2030”.
They repeated the promise even though the Department of Health and Social Care was putting contracts out to tender for hospital building that ran until 2035. They repeated that commitment even after the National Audit Office found that the Government
“will not now deliver 40 new hospitals by 2030.”
They repeated it even though the Government’s own infrastructure watchdog deemed it to be “unachievable.” No one thought that the promise would be met, yet the Conservative party made it anyway time and again.
Despite knowing this, when I walked into the Department of Health and Social Care on 5 July, what I discovered shocked me. The scheme was not just years behind schedule; the money provided by the previous Government was due to run out in March, just weeks from today. On 25 May 2023, the then Health and Social Care Secretary, the right hon. Member for North East Cambridgeshire (Steve Barclay), stood at this Dispatch Box and told the House:
“Today’s announcement confirms more than £20 billion of investment”.—[Official Report, 25 May 2023; Vol. 733, c. 480.]
The truth is that no funding had been set aside for future years; the money simply was not there. This was a programme built on the shaky foundation of false hope.
If I was shocked by what I discovered, patients ought to be furious—not just because the promises made to them were never going to be kept, but because they can see when they go into hospital how badly the health service needs new buildings. The NHS is quite literally crumbling. Lord Darzi’s independent investigation found that the NHS was starved of capital investment by the previous Government. Its outdated estate has hit productivity, with services disrupted at 13 hospitals every day during 2022-23. I have visited hospitals where the roof has fallen in and where pipes regularly leak and even freeze over in winter. The Conservatives literally did not fix the roof when the sun was shining.
On Thursday, the Infrastructure and Projects Authority published its annual report for 2023-24. Its assessment of the new hospital programme read:
“There are major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable. The project may need re-scoping and/or its overall viability reassessed.”
That is what this Government have done.
Our review of the new hospital programme and the announcement I am making today will do two things: first, it will put the programme on a firm footing with sustainable funding, so that all the projects can be delivered; and, secondly, it will give patients an honest, realistic and deliverable timetable that they can believe in. This Labour Government are rebuilding our NHS, and as we do so, we will also rebuild trust in politics.
The seven hospitals built wholly or mostly from reinforced autoclaved aerated concrete—RAAC—were outside the scope of the review. These will be rebuilt at pace to protect people’s safety. Also out of scope were the hospitals already under construction or with an approved business case, where building works have continued without delay.
Working closely with my right hon. Friend the Chief Secretary to the Treasury, we have secured five-year waves of investment, backed by £15 billion of investment over consecutive waves, averaging £3 billion a year. That funding is in addition to the £1 billion that the Chancellor announced at the Budget to tackle dangerous RAAC and the backlog of critical maintenance, repairs and upgrades across the NHS estate. It is also in addition to the £1.5 billion we are investing in new surgical hubs, diagnostic scanners and beds. Together, it forms part of the £13.6 billion of capital investment announced at the Budget, which is the largest capital investment in our national health service since Labour was last in office.
I will now set out the new timetable. Projects in wave zero are already in the advanced stages of development and will be completed within the next three years. These are: the Bamburgh unit, phase 3 of the care environment development and re-provision, or CEDAR programme; the national rehabilitation centre in Nottinghamshire; Oriel eye hospital; Royal Bournemouth hospital; St Ann’s hospital; Alumhurst Road children’s mental health unit; and Dorset county hospital.
Wave 1 schemes will begin construction between 2025 and 2030. These include the seven RAAC hospitals: Leighton hospital; West Suffolk hospital; Frimley Park hospital; Hinchingbrooke hospital; Queen Elizabeth hospital; James Paget hospital; and Airedale general hospital. The other wave 1 schemes are: Poole hospital, Milton Keynes hospital; the 3Ts hospital—trauma, tertiary and training—in Brighton; the women and children’s hospital, Cornwall; Derriford emergency care hospital; Cambridge cancer research hospital; Shotley Bridge community hospital; North Manchester general hospital; and Hillingdon hospital.
Wave 2 schemes will now begin main construction between 2030 and 2035. They are: Leicester general hospital and Leicester royal infirmary; Watford general hospital, the specialist and emergency care hospital in Sutton; Kettering general hospital; Leeds general infirmary; Musgrove Park hospital; Princess Alexandra hospital; Torbay hospital; and Whipps Cross hospital, where I should declare an interest, as it serves my constituency.
Wave 3 includes nine schemes that will start construction between 2035 and 2039: St Mary’s hospital in London; Charing Cross hospital and Hammersmith hospital; North Devon district hospital; Eastbourne district general hospital, Conquest hospital and Bexhill hospital; Hampshire hospitals; Royal Berkshire hospital; Royal Preston hospital; the Royal Lancaster infirmary; and the Queen’s medical centre and Nottingham city hospital.
Following this statement, further details of the hospital building programme will be published on my Department’s website and a copy of the report will be placed in the House of Commons Library. In addition, the Minister for Secondary Care will hold meetings tomorrow, to which MPs of all parties are invited, to answer any further questions about these projects.
To ensure that every penny of taxpayers’ money is well spent and every hospital is delivered as quickly as possible, we will shortly launch a new framework for the construction of the new schemes. This will be a different way of contracting by working in partnership with industry to mitigate cost, schedule and delivery risks and saving money through a standardised design approach. That will speed up the process of opening new hospitals and provide a foundation for a collaborative supply-chain partnership. We will also appoint a programme delivery partner in the coming weeks to support the delivery of crucial hospital infrastructure across the country and provide programme, project and commercial expertise.
I know that patients in some parts of the country will be disappointed by this new timetable—they are right to be. They were led up the garden path by three Conservative Prime Ministers, all promising hospitals with no credible plan for funding to deliver them, and by Conservative MPs, who stood on a manifesto promise they knew could never be kept. We will not treat the British people with the same contempt. We will never play fast and loose with the public’s trust.
The plan that we have laid out today is honest, funded and can actually be delivered. It is a serious, credible plan to build the hospitals that our NHS needs. It is part of the biggest capital investment that the NHS has seen since Labour was last in office, delivering not just more hospitals but new surgical hubs, community diagnostic centres, AI-enabled scanners, radiotherapy machines, modern technology, new mental health crisis centres and upgrades to hundreds of GP estates. It will take time, but this Labour Government are determined to rebuild our NHS and rebuild trust in politics. I commend this statement to the House.
The Secretary of State and the Chancellor travelled the country to meet candidates who were promising a new hospital in their local area. In fact, despite my right hon. Friend the Member for Louth and Horncastle (Victoria Atkins) calling them out in this very place in May last year, warning that Labour had said in the small print of its health missions that it was planning to pause all this capital investment, the Secretary of State was quoted in the Evening Standard in June last year to have said:
“We are committed to delivering the New Hospitals Programme”.
Those are seemingly hollow words now that those hospitals are at risk, with the investment and upgrades they deserve pushed back potentially to start in some cases as late as 2039. Voters put their trust in the Labour party to deliver on its promises, yet today they have been let down.
In response to claims that that is perhaps because of Labour’s economic inheritance, that simply does not reflect reality. Before the Secretary of State warms to the theme of the mythical £22 billion black hole, he will know that the Office for Budget Responsibility has simply failed to recognise that figure. Let us also be clear that, due to the Labour party and the Chancellor’s financial mismanagement at the Budget and the rise in gilts, the BBC recently estimated that the cost of borrowing could be £10 billion higher over this Parliament. Just imagine what the Secretary of State could have announced today if the Chancellor of the Exchequer had not caused that.
To govern is to choose: what to spend money on, what to invest in, and what not to invest in. The Secretary of State rightly pointed out that the Darzi review highlighted the need for more capital investment in the NHS, yet he has decided not to prioritise the delivery of these new hospitals in a rapid fashion. He will also know how the Treasury allocates funding, with cash earmarked to the end of a spending review period but not going across it until that comprehensive spending review formally concludes—that is what his Government are now doing.
The Secretary of State will be aware that the previous Secretary of State, my right hon. Friend the Member for North East Cambridgeshire (Steve Barclay), was very clear about the £20 billion anticipated in the next CSR to fund this. Let me be clear: we prioritised the delivery of these new hospitals, as my right hon. Friend did in his statement on RAAC on 25 May 2023, setting out the Government’s commitment to fund them. This Secretary of State has not replicated that.
We had a clear plan, with that funding commitment to be formalised at the CSR, to approve, build and complete new hospitals to a definition akin to that used by Tony Blair when building new hospitals, which were already being designed to a standardised approach with modern methods of construction. The Secretary of State has put that progress at risk. Will he confirm that in his CSR discussions with the Chancellor of the of the Exchequer about the capital departmental expenditure limit—CDEL—allocation for his Department, he will prioritise the new hospital programme? When will the Secretary of State set out to local people in each area exactly when construction will start? I declare an interest: University Hospitals of Leicester NHS trust serves my constituents. In each case, when will the doors actually open?
If the Chancellor fails to get the economy growing and starts looking yet again for cuts to fill the hole that she created with her Budget, will the Secretary of State rule out any further delays? What is his assessment of the effect of his lengthening the programme’s timescales on costs, given inflationary pressures? Are all other previously approved capital projects and programmes safe from review? Can he possibly update the House—via the Library if not here—on his latest assessment of the impact of RAAC in those hospitals, which rightly he is continuing to prioritise?
Today’s announcement will come as a bitter blow to trusts, staff and, crucially, patients, who believed the Labour party and will now be left waiting even longer for vital investment. Yet again, before the election, they talked the talk, but patients lose out when this Government fail to deliver. In yet again kicking the can down the road, as is increasingly their habit, they have sadly betrayed the trust of the British people.
Once again, like the arsonist returning to the scene of the crime to criticise the fire brigade for not responding fast enough, the Conservatives have the audacity to come here and talk about a failure to deliver, when promise after promise was broken. The shadow Secretary of State was the Chief Secretary to the Treasury who had to come in to clean up the mess caused by Liz Truss’s mini-Budget. That is what crashing the economy looks like. They still have not had the decency, even under new leadership, to apologise.
If the shadow Health Secretary genuinely believes that all these projects could be delivered by 2030—the commitment in the Conservatives’ manifesto—I invite him to publish today their plan for doing it. How would he ensure the funding, labour supply, building materials and planning to build the remaining projects in the next five years? Which capital programmes would he cut? Which taxes would he increase? He knows as well as anyone that those are the choices that face Government.
While he is doing that, can the shadow Health Secretary tell us what he can see that the National Audit Office, the Infrastructure and Projects Authority and the eyes in my head cannot see? What was the Conservatives’ plan past March, when the money runs out? What taxes would they have raised? I wonder what capital projects they would have cut in order to invest even more than we are in hospital buildings—the biggest capital investment since Labour was last in office.
While he is answering those questions, the shadow Healthy Secretary might want to reflect, with the shadow Cabinet and with Members on the Benches behind him, on the other messes that this Government are having to clear up. As I look around the Cabinet table, I see an Education Secretary dealing with crumbling schools, a Justice Secretary without enough prison places, a Defence Secretary dealing with a more dangerous world, a Transport Secretary having to rebuild our crumbling infrastructure, and a Deputy Prime Minister building the homes we need—in short, dealing with multiple crises of the Conservatives’ making. There is a massive rebuilding job to do in Britain, and we are getting on with it.
Given that the new hospital programme is delayed, it is more urgent than ever to increase capacity by fixing social care, so that those who are well enough to leave hospital can be cared for in the community, thus freeing up beds immediately. We cannot endure both insufficient social care packages and crumbling hospitals. Given this delay to the new hospital programme, will the Secretary of State commit to prioritising more social care packages now, rather than waiting three years for a review to be complete?
Although the Health Secretary is not responsible for the state of the NHS or the state of the economy, which the Government inherited, the new hospital programme was seen as part of the solution to the crisis in the NHS, and people across the sector have warned that delaying the programme will only mean more treatments cancelled and more money wasted plugging holes in hospital buildings that are no longer fit for purpose. We are therefore concerned that one of the biggest announcements to affect the NHS over the next few years is coming out right now, during Donald Trump’s inauguration, because it will not get the media attention it deserves. Liberal Democrats therefore urge the Health Secretary to promise to release a full impact assessment on how the delays to the new hospital programme will affect patients and NHS staff.
I committed some time ago to coming to the House in the new year. I have kept that promise and I dare say that the decisions that we are taking and setting out today will receive good coverage. I reassure the hon. Gentleman, and other Members across the House with an interest in particular schemes, that my hon. Friend the Minister for Secondary Care and officials from the programme team will be happy to meet as early as tomorrow to take questions on individual schemes.
The hon. Gentleman raises broader challenges for the NHS and social care pressures in our country. That is why the Chancellor prioritised investment in our NHS and social care services in the Budget, with £26 billion of additional funding for my Department of Health and Social Care. On social care specifically, we have taken a number of actions in our first six months: fair pay agreements for care professionals, the biggest expansion of the carer’s allowance since the 1970s and an uplift in funding for local authorities, including specific ringfenced funding for social care. We will be setting out further reforms throughout this year, as well as phase 1 of the Casey commission reporting next year for the duration for this Parliament.
Opposition Members cannot have it both ways. They cannot keep on welcoming the investment and opposing the means of raising it. If they do not support the Chancellor’s Budget, which is their democratic right, they have to say which services they would cut or which alternative taxes they would raise. Welcome to opposition, folks. We’ve been there. Enjoy the ride: you’ll be there for some time.
Finally, let me just say this to the Liberal Democrats, who have constructively raised a range of challenges. This is at the heart of the challenge facing this Government. The hon. Gentleman is right to mention the capital challenges facing the secondary care estate. The same is true of the primary care estate and of the community and mental health estates. As I have spelled out, every single one of my Cabinet colleagues also has significant capital pressures. That is the consequence of 14 years of under-investment in our public infrastructure and in our public services, which means that we are paying a hell of a lot more for the Conservatives’ failure than we would have if they had built on, rather than demolished, Labour’s record of the shortest waiting times and the highest patient satisfaction in history.
I stood outside Hillingdon hospital, having had a good look around at the state of the hospital and the plans for the reconstruction of the site. I am delighted to have kept my promise and this Government’s promise, so that construction at Hillingdon hospital will begin in 2027-28. My hon. Friend is quite right to say that his predecessor and his predecessor’s predecessor made claims about Hillingdon hospital that were not true. This Government will not make those mistakes. We will keep our promise. What we have set out for all schemes in the new hospital programme is a credible, realistic, funded timetable that this Government, for as long as there is a Labour Government, will actually deliver.
The right hon. Gentleman referred to the number of houses that the Secretary of State for Housing, Communities and Local Government is determined to see built. Could he explain, for the sake of East Kent, how the primary and secondary healthcare services will be provided to meet the needs of the people who will live in those houses?
The right hon. Gentleman asks about the Government’s commitment to building 1.5 million more homes. Let me reassure him and the House that the Deputy Prime Minister and I, as well as other members of the Cabinet, are discussing very carefully how we can make sure that alongside the new homes that our country needs, we have the infrastructure and the public services that people deserve.
I welcome the honesty and realism of the Government’s statement today. It is about time the British people had a Government playing straight with them and telling them the truth. [Interruption.] Instead of laughing and jeering from the Conservative Benches, which is of no use to my constituents in Chelsea and Fulham who were promised the money for Charing Cross hospital when it was never there, I would like to see some contrition. On a more positive note, can the Secretary of State assure my constituents that the timetable that he has set out will be met?
In the particular case that the hon. Gentleman raises, I hope that the fact that land was acquired by this Government in December 2024 signals our absolute commitment to the scheme. If we were not committed to the scheme, we would not have made the land purchase up front ahead of pre-construction works, which are planned for 2030. We did so because we absolutely accept the case that he makes about the desirability of the site and the need for investment and the new hospital locally. In addition to the representations from the hon. Gentleman, my hon. Friend the Member for Lancaster and Wyre (Cat Smith) wins the award for being the first MP to collar me straight after the election to say, “Buy this land and do it now.”
I would just remind the right hon. Gentleman—[Interruption.] I remind him and those on the Conservative Benches who are living in an alternate reality where they bear no responsibility for their actions of only months ago, that the National Audit Office said:
“By the definition the government used in 2020, it will not now deliver 40 new hospitals by 2030.”
The Infrastructure and Projects Authority gave the scheme a red rating, saying that
“the project appears to be unachievable… The project may need re-scoping and/or its overall viability reassessed.”
What on earth does he think that record did for NHS managers, given the stop-start, stop-start? What on earth does he think that did to communities who were seeking certainty and assuming that the promises made by the Conservatives would be kept? They said in their manifesto only last July that they would deliver 40 new hospitals by 2030. Well, according to the NAO’s definition and the IPA’s report, that promise was never going to be kept. They knew it. They did not care. They just said what they wanted to try to win votes, and that is disgraceful.
Are we able to rescue something from this wreckage by purchasing the site? As the Secretary of State will know, we are now likely to lose the land. It is a critical site, so can we please buy it before it slips from our grasp?
Does my right hon. Friend agree that the previous Government’s commitment to delivering 40 new hospitals by 2030 was, as the NAO concluded, disingenuous and “unrealistic”?
A lot has been said about what my party said before the election, and I will give Opposition Members a role model in how to do honesty ahead of an election. I stood outside the Royal Cornwall hospital and was asked by local media whether I would commit to a specific timetable, and I said, “We have committed to the new hospitals programme. We are committed to seeing through the new women and children’s hospital at the Royal Cornwall, and I know that enabling work is under way. Beyond that, we are going to take an honest look at the books.” That is the approach I took as shadow Health and Social Care Secretary, and that is how to do it—to under-promise and then over-deliver.
I thank my right hon. Friend for visiting the LGI. Now that we know we are in wave 2, will he meet me and the chief executive to talk about one of the largest maintenance backlogs in the NHS, how we are going to cope in the intervening period, and how we are going to move forward and hit wave 2 running to get our hospital built before we need to close down our children’s services, which are at risk?
More seriously, on the phasing of the programme, we have taken an approach that ensures that we can stand up and look his constituents and others in the eye, and say that we have an affordable programme that can be delivered according to the timetable that is set out. I know people will be disappointed by the length of time it will take and I am genuinely sorry that they were led up the garden path by our predecessors. That is why we have taken an approach that says that honesty is the best policy. We would rather be up front about the length of time and in the meantime ensure we are delivering the investment and reform needed to reduce waiting times and improve primary, community and social care services, so even as work continues to prepare for the Royal Berkshire hospital scheme, his constituents and others across Berkshire will begin to experience an improving NHS under Labour, as opposed to the broken one they experienced under the Conservatives.
One of the plans that went by the board in May, for reasons I have not quite got to the bottom of, was for the Staines health and wellbeing centre, which is one of only six community diagnostic hubs that NHS England has allocated in England. The funding got pulled in May; will the Secretary of State please have another look at it?
That brings me to my question. I welcome the clarity that the Secretary of State has brought to the scheme and to the House today. A number of the hospitals in cohort 4, which includes Basingstoke hospital, have been moved forward, such as the hospitals in Milton Keynes and Kettering. I am of course delighted for my colleagues, but I would be interested to know why they have been moved, but Basingstoke is where it is. What confidence can the Secretary of State give my constituents that under our plan, unlike the previous Government’s, they can be confident that Basingstoke hospital will be delivered as we have set out?
I am very happy to talk through with my hon. Friend and his constituents why his project has been phased as it has. There are a number of constraining factors—not just resources, but other factors such as allocation of land, planning and so on—but I reassure his constituents that we will deliver. I also reassure his constituents that, since his arrival in this place, he has been absolutely dogged and determined in speaking up for them and lobbying on their behalf.
The campaign for Whipps Cross hospital is not over, however. As the Secretary of State’s team knows, we will continue to make other Departments aware of the impact on their housing programmes and continue to seek their support on his behalf. I am grateful for his remarks earlier about meeting to look at alternative funding methods. Will the Secretary of State confirm that funding for remediation and maintenance works will be made available to get our hospital to its wave 2 start line?
I know that across the House and the country there will be real anger at the promises made by the Conservatives when people see that the timetable was a work of fiction and the money was not there. I hope it is of some reassurance to know that this Secretary of State represents a community that is also feeling let down by the actions of the Conservatives, as does the Chancellor of the Exchequer. The way in which we have phased this scheme, and the fact that both our schemes are in wave 2, should reassure people that we are doing as much as we can as fast as we can within the constraints. I hope that people will take some comfort from the honesty, credibility and affordability of the timetable we are setting out today. As long as there is a Labour Government, the new hospital programme will be delivered.
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