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Health and Social Care (Community Health and Standards) Act 2003 (c. 43)

(The document as of February, 2008)

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Health and Social Care (Community Health and Standards) Act 2003

2003 CHAPTER 43

CONTENTS

Content
  1. Part 1

    NHS foundation trusts

    1. Introductory

      1. 1. NHS foundation trusts

      2. 2. Independent Regulator of NHS Foundation Trusts

      3. 3. General duty of regulator

    2. Authorisation

      1. 4. Applications by NHS trusts

      2. 5. Other applications

      3. 6. Authorisation of NHS foundation trusts

      4. 7. Effect of authorisation

      5. 8. Amendments of constitution

      6. 9. Variation of authorisation

      7. 10. Register of NHS foundation trusts

    3. Financial matters

      1. 11. Power of Secretary of State to give financial assistance

      2. 12. Prudential borrowing code

      3. 13. Public dividend capital

    4. Functions

      1. 14. Authorised services

      2. 15. Private health care

      3. 16. Protection of property

      4. 17. Financial powers

      5. 18. General powers

      6. 19. Information

      7. 20. Entry and inspection of premises

      8. 21. Fees

      9. 22. Trust funds and trustees

    5. Failure

      1. 23. Failing NHS foundation trusts

      2. 24. Voluntary arrangements

      3. 25. Dissolution etc.

      4. 26. Sections 24 and 25: supplementary

    6. Mergers

      1. 27. Mergers

      2. 28. Section 27: supplementary

    7. Co-operation

      1. 29. Co-operation between NHS bodies

    8. Patient and public involvement

      1. 30. Public involvement and consultation

      2. 31. Patients' Forums

      3. 32. Commission for Patient and Public Involvement in Health

    9. Miscellaneous

      1. 33. Taxation

      2. 34. Other amendments relating to NHS foundation trusts

      3. 35. Conduct of elections

      4. 36. Offence

      5. 37. Representative membership

      6. 38. Audit

      7. 39. General duty of NHS foundation trusts

    10. Supplementary

      1. 40. Interpretation of Part 1

  2. Part 2

    Standards

    1. Chapter 1

      Regulatory bodies

      1. 41. The Commission for Healthcare Audit and Inspection

      2. 42. The Commission for Social Care Inspection

      3. 43. Transfer of property etc to CHAI and CSCI

      4. 44. Abolition of former regulatory bodies

    2. Chapter 2

      NHS health care: introductory

      1. 45. Quality in health care

      2. 46. Standards set by Secretary of State

      3. 47. Standards set by Assembly

    3. Chapter 3

      NHS health care: functions of CHAI

      1. Healthcare provided by and for NHS bodies

        1. 48. Introductory

        2. 49. National performance data

        3. 50. Annual reviews

        4. 51. Reviews: England and Wales

        5. 52. Reviews and investigations: England

        6. 53. Failings

        7. 54. Functions relating to Secretary of State and Assembly

        8. 55. Reviews of data

        9. 56. Co-ordination of reviews

      2. Other functions

        1. 57. Studies as to economy, efficiency etc

        2. 58. Additional functions

      3. Supplementary

        1. 59. Criteria

        2. 60. Provision of material

        3. 61. Co-operation between CHAI and the regulator

        4. 62. Fees

        5. 63. Fees: Wales

        6. 64. Reports and information

        7. 65. Co-operation between CHAI and the Audit Commission

        8. 66. Right of entry

        9. 67. Right of entry: supplementary

        10. 68. Power to require documents and information etc

        11. 69. Power to require explanation

    4. Chapter 4

      NHS health care: functions of National Assembly for Wales

      1. Reviews and investigations

        1. 70. Reviews and investigations relating to Wales

        2. 71. Reporting to Secretary of State and regulator

      2. Ancillary powers

        1. 72. Right of entry

        2. 73. Right of entry: supplementary

        3. 74. Power to require documents and information

        4. 75. Power to require explanation

    5. Chapter 5

      Social services: functions of CSCI

      1. Provision of social services

        1. 76. Introductory

        2. 77. Information and advice

        3. 78. Review of studies and research

        4. 79. Annual reviews

        5. 80. Other reviews and investigations

        6. 81. Failings

      2. Other functions

        1. 82. Studies as to economy, efficiency etc

        2. 83. Joint working with Audit Commission

        3. 84. Additional functions

      3. Supplementary

        1. 85. Criteria

        2. 86. Fees

        3. 87. Reports and information

        4. 88. Right of entry

        5. 89. Right of entry: supplementary

        6. 90. Power to require information etc

        7. 91. Power to require explanation

    6. Chapter 6

      Social services: functions of National Assembly for Wales

      1. Provision of social services

        1. 92. General function

        2. 93. Reviews of studies and research

        3. 94. Reviews and investigations

        4. 95. Studies as to economy, efficiency etc

        5. 96. Additional functions

        6. 97. General considerations

      2. Ancillary powers

        1. 98. Right of entry

        2. 99. Right of entry: supplementary

        3. 100. Power to require information

        4. 101. Power to require explanation

    7. Chapter 7

      Functions under the Care Standards Act 2000

      1. Functions of CHAI and CSCI

        1. 102. Transfer of functions to CHAI and CSCI

        2. 103. General functions of CHAI

        3. 104. General functions of CSCI

        4. 105. Fees

      2. Miscellaneous

        1. 106. Meaning of "independent medical agency"

        2. 107. Children's homes providing secure accommodation

        3. 108. Information and inspection

        4. 109. Assembly: duties relating to children

    8. Chapter 8

      Other functions of CSCI

      1. 110. Boarding schools and colleges

      2. 111. Boarding schools and colleges: reports

      3. 112. Secure training centres

    9. Chapter 9

      Complaints

      1. 113. Complaints about health care

      2. 114. Complaints about social services

      3. 115. Complaints regulations: supplementary

      4. 116. Further consideration of representations under the Children Act 1989

      5. 117. Representations relating to special guardianship support services

      6. 118. Complaints about handling of complaints

      7. 119. Complaints: data protection

    10. Chapter 10

      Supplementary and general

      1. Joint working

        1. 120. Co-operation etc

        2. 121. Reviews and investigations

        3. 122. Joint annual reviews

        4. 123. Power to assist

      2. Arrangements with public authorities

        1. 124. Arrangements with Ministers etc: CHAI

        2. 125. Arrangements with Ministers etc: CSCI

        3. 126. Arrangements with the Isle of Man and Channel Islands: CHAI

        4. 127. Arrangements with the Isle of Man and Channel Islands: CSCI

      3. Reports

        1. 128. Reports: CHAI

        2. 129. Reports: CSCI

      4. Relationship with government

        1. 130. Duty to have regard to government policy: CHAI

        2. 131. Duty to have regard to government policy: CSCI

        3. 132. Failure in discharge of functions: CHAI

        4. 133. Failure in discharge of functions: CSCI

      5. Inquiries

        1. 134. Inquiries: CHAI

        2. 135. Inquiries: CSCI

      6. Information

        1. 136. Disclosure of information obtained by CHAI

        2. 137. Section 136: defence

        3. 138. Information obtained by CHAI: supplementary

        4. 139. Information obtained by CSCI: supplementary

        5. 140. Code of practice: CHAI

        6. 141. Code of practice: CSCI

      7. Wales: supplementary

        1. 142. Annual reports of Assembly

        2. 143. Use by Assembly of information

        3. 144. Inquiries: Wales

        4. 145. Co-operation between Assembly and CHAI

      8. General

        1. 146. Offences by bodies corporate

        2. 147. Minor and consequential amendments

        3. 148. Interpretation of Part 2

        4. 149. References to the provision of health care

  3. Part 3

    Recovery of NHS charges

    1. NHS charges

      1. 150. Liability to pay NHS charges

    2. Certificates of NHS charges

      1. 151. Applications for certificates of NHS charges

      2. 152. Section 151: supplementary

      3. 153. Information contained in certificates

    3. Recovery of NHS charges

      1. 154. Payment of NHS charges

      2. 155. Recovery of NHS charges

    4. Review and appeal

      1. 156. Review of certificates

      2. 157. Appeal against a certificate or a waiver decision

      3. 158. Appeal tribunals

      4. 159. Appeal to Social Security Commissioner

    5. Information

      1. 160. Provision of information

      2. 161. Use of information held by the Secretary of State or the Scottish Ministers etc.

    6. Payments to hospitals or ambulance trusts

      1. 162. Payment of NHS charges to hospitals or ambulance trusts

    7. Miscellaneous and general

      1. 163. Regulations governing lump sums, periodical payments etc

      2. 164. Liability of insurers

      3. 165. Power to apply Part 3 to treatment at non-health service hospitals

      4. 166. The Crown

      5. 167. Regulations

      6. 168. Interpretation of Part 3

      7. 169. Consequential and minor repeals

  4. Part 4

    Dental and medical services

    1. Primary dental services

      1. 170. Provision of primary dental services

      2. 171. Dental public health

      3. 172. General dental services contracts

      4. 173. General dental services: transitional

    2. Primary medical services

      1. 174. Provision of primary medical services

      2. 175. General medical services contracts

      3. 176. General medical services: transitional

    3. Primary dental and medical services: supplementary

      1. 177. Arrangements under section 28C of the 1977 Act

      2. 178. Abolition of pilot schemes

      3. 179. Persons performing primary medical and dental services

      4. 180. Assistance and support

    4. Dental services: miscellaneous

      1. 181. Abolition of Dental Practice Board

      2. 182. Special Health Authorities

      3. 183. Charges for dental services

    5. General

      1. 184. Minor and consequential amendments

  5. Part 5

    Miscellaneous

    1. Welfare Food Schemes

      1. 185. Replacement of the Welfare Food Schemes: Great Britain

      2. 186. Replacement of the Welfare Food Schemes: Northern Ireland

    2. Appointments and employment

      1. 187. Appointments to certain health and social care bodies

      2. 188. Appointments to certain health and social care bodies: joint functions

      3. 189. Validity of clearance for employment in certain NHS posts

    3. Public Health Laboratory Service Board

      1. 190. Abolition of Public Health Laboratory Service Board

    4. Other provisions

      1. 191. Loans by Secretary of State to NHS trusts

      2. 192. Amendment of provision relating to reform of Welsh health authorities

  6. Part 6

    Final provisions

    1. 193. Financial provisions

    2. 194. Interpretation

    3. 195. Orders and regulations

    4. 196. Repeals and revocations

    5. 197. Wales

    6. 198. Isles of Scilly

    7. 199. Commencement

    8. 200. Transitional or transitory provision and savings

    9. 201. Supplementary and consequential provision

    10. 202. Extent

    11. 203. Short title

    1. Schedule 1

      Constitution of public benefit corporations

    2. Schedule 2

      Independent Regulator of NHS Foundation Trusts

    3. Schedule 3

      Transfer of staff

    4. Schedule 4

      Amendments relating to NHS foundation trusts

    5. Schedule 5

      Audit of accounts of NHS foundation trusts

    6. Schedule 6

      CHAI: supplementary

    7. Schedule 7

      CSCI: supplementary

    8. Schedule 8

      CHAI and CSCI: transfers of property and staff, etc

    9. Schedule 9

      Part 2: minor and consequential amendments

    10. Schedule 10

      Recovery of NHS charges: exempted payments

    11. Schedule 11

      Part 4: minor and consequential amendments

    12. Schedule 12

      Privy Council appointments

    13. Schedule 13

      Amendments consequential on the abolition of the Public Health Laboratory Service Board

    14. Schedule 14

      Repeals and revocations

      1. Part 1

        NHS foundation trusts

      2. Part 2

        Standards

      3. Part 3

        Recovery of NHS charges

      4. Part 4

        Dental and medical services

      5. Part 5

        Replacement of Welfare Food Schemes

      6. Part 6

        Loans by Secretary of State to NHS trusts

      7. Part 7

        Abolition of the Public Health Laboratory Service Board

An Act to amend the law about the National Health Service; to make provision about quality and standards in the provision of health and social care, including provision establishing the Commission for Healthcare Audit and Inspection and the Commission for Social Care Inspection; to amend the law about the recovery of NHS costs from persons making compensation payments; to provide for the replacement of the Welfare Food Schemes; to make provision about appointments to health and social care bodies; and for connected purposes.

[20th November 2003]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part 1 NHS foundation trusts

Introductory

1 NHS foundation trusts

(1) An NHS foundation trust is a public benefit corporation which is authorised under this Part to provide goods and services for the purposes of the health service in England.

(2) A public benefit corporation is a body corporate which, in pursuance of an application under this Part, is constituted in accordance with Schedule 1.

2 Independent Regulator of NHS Foundation Trusts

(1) There is to be a body corporate known as the Independent Regulator of NHS Foundation Trusts (referred to in this Part as "the regulator").

(2) Schedule 2 (which makes further provision about the regulator) has effect.

3 General duty of regulator

The regulator must exercise its functions in a manner that is consistent with the performance by the Secretary of State of the duties under sections 1, 3 and 51 of the National Health Service Act 1977 (c. 49) (duty as to health service and services generally and as to university clinical teaching and research).



Authorisation

4 Applications by NHS trusts

(1) An NHS trust may make an application to the regulator for authorisation to become an NHS foundation trust, if the application is supported by the Secretary of State.

(2) The application must--

(a) describe the goods and services which the NHS trust proposes should be provided by the NHS foundation trust, and

(b) be accompanied by a copy of the proposed constitution of the trust;

and must give any further information which the regulator requires the NHS trust to give.

(3) The applicant may modify the application with the agreement of the regulator at any time before authorisation is given under section 6.

(4) Once an NHS trust has made the application--

(a) the provisions of the proposed constitution which give effect to paragraphs 3 to 19 of Schedule 1 have effect, but only for the purpose of establishing the initial membership of the NHS foundation trust and of the board of governors, and the initial directors, and enabling the board of governors and board of directors to make preparations for the performance of their functions,

(b) the NHS trust may do anything (including the things mentioned in paragraph 16 of Schedule 2 to the National Health Service and Community Care Act 1990 (c. 19) (general powers)) which appears to it to be necessary or desirable for the purpose of preparing it for NHS foundation trust status.

5 Other applications

(1) An application may be made to the regulator by persons (other than an NHS trust) to be incorporated as a public benefit corporation and authorised to become an NHS foundation trust, if the application is supported by the Secretary of State.

(2) The application must--

(a) describe the goods and services which the applicants propose should be provided by the trust, and

(b) be accompanied by a copy of the proposed constitution of the trust;

and must give any further information which the regulator requires the applicants to give.

(3) If it appears to the regulator that--

(a) provision of the goods and services described in the application is likely to assist in the performance of the duties mentioned in section 3,

(b) the trust as proposed to be constituted will be able to provide those goods and services, and

(c) the proposed constitution accords with Schedule 1 and is otherwise appropriate,

the regulator may issue a certificate of incorporation.

(4) The applicants may modify the application with the agreement of the regulator at any time before the certificate is issued.

(5) On the issue of the certificate, the applicants are incorporated as a public benefit corporation.

(6) The certificate is conclusive evidence of incorporation.

(7) Once the certificate has been issued--

(a) the proposed constitution has effect, but the applicants may exercise the functions of the corporation on its behalf until a board of directors is appointed in accordance with the constitution,

(b) the corporation may do anything (including the things mentioned in section 18) which appears to it to be necessary or desirable for the purpose of preparing it for NHS foundation trust status.

6 Authorisation of NHS foundation trusts

(1) The regulator may give an authorisation under this section--

(a) to an NHS trust which has applied under section 4, or

(b) to a public benefit corporation,

if the regulator is satisfied as to the following matters.

(2) The matters are that--

(a) the applicant's constitution will be in accordance with Schedule 1 and will otherwise be appropriate,

(b) the applicant has taken steps to secure that (taken as a whole) the actual membership of any public constituency, and (if there is one) of the patients' constituency, will be representative of those eligible for such membership,

(c) there will be a board of governors, and a board of directors, constituted in accordance with the constitution,

(d) the steps necessary to prepare for NHS foundation trust status have been taken,

(e) the applicant will be able to provide the goods and services which the authorisation is to require it to provide, and

(f) any other requirements which the regulator considers appropriate are met.

(3) In deciding whether it is satisfied as to the matters referred to in subsection (2)(e), the regulator is to consider (among other things)--

(a) any report or recommendation in respect of the applicant made by the Commission for Healthcare Audit and Inspection,

(b) the financial position of the applicant.

(4) The authorisation may be given on any terms the regulator considers appropriate.

(5) The regulator must not give an authorisation unless it is satisfied that the applicant has sought the views about the application of the following--

(a) if the applicant is an NHS trust, the Patients' Forum for the trust and the staff employed by the trust,

(b) individuals who live in any area specified in the proposed constitution as the area for a public constituency,

(c) any local authority that would be authorised by the proposed constitution to appoint a member of the board of governors,

(d) if the proposed constitution provides for a patients' constituency, individuals who would be able apply to become members of that constituency,

(e) any persons prescribed by regulations.

(6) If regulations make provision about consultation, the regulator may not give an authorisation unless it is satisfied that the applicant has complied with the regulations.

(7) The generality of the power in subsection (4) is not affected by the following provisions of this Part.

7 Effect of authorisation

(1) On an authorisation being given to a body corporate which is an NHS trust--

(a) it ceases to be an NHS trust and becomes an NHS foundation trust,

(b) the proposed constitution has effect.

(2) In consequence of subsection (1)(a), any order made under section 5(1) of the 1990 Act (establishment of the NHS trust) is revoked.

(3) On an authorisation being given to a body corporate which is a public benefit corporation, it becomes an NHS foundation trust.

(4) The authorisation is conclusive evidence that the body in question is an NHS foundation trust.

(5) Subsections (1) to (3) do not affect the continuity of the body or of its property or liabilities.

(6) The validity of any act of an NHS foundation trust is not affected by any vacancy among the directors or by any defect in the appointment of any director.

(7) An NHS foundation trust is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown; and the trust's property is not to be regarded as property of, or property held on behalf of, the Crown.

8 Amendments of constitution

An NHS foundation trust may make amendments of its constitution with the approval of the regulator.

9 Variation of authorisation

(1) The regulator may vary an authorisation.

(2) In deciding whether or not to vary an authorisation the regulator is to have regard (among other things) to--

(a) any report or recommendation made to it by virtue of section 21(2)(f) of the Local Government Act 2000 (c. 22) (overview and scrutiny committees),

(b) any report or recommendation made to it by the Commission for Patient and Public Involvement in Health under section 20(5)(b) or (6) of the National Health Service Reform and Health Care Professions Act 2002 (c. 17).

10 Register of NHS foundation trusts

(1) The regulator must establish and maintain a register of NHS foundation trusts.

(2) The register must contain in relation to each NHS foundation trust--

(a) a copy of the current constitution,

(b) a copy of the current authorisation,

(c) a copy of the latest annual accounts and of any report of the auditor on them,

(d) a copy of the latest annual report,

(e) a copy of the latest document sent to the regulator under paragraph 27 of Schedule 1 (forward planning),

(f) a copy of any notice given under section 23 (failing NHS foundation trusts).

(3) In relation to any time before an NHS foundation trust is first required to send an annual report to the regulator, the register must contain a list of the persons who were first elected or appointed as--

(a) the members of the board of governors,

(b) the directors.

(4) Members of the public may inspect the register at any reasonable time.

(5) Any person who requests it is to be provided with a copy of or extract from any document contained in the register on payment of a reasonable charge.



Financial matters

11 Power of Secretary of State to give financial assistance

(1) The Secretary of State may give financial assistance to any NHS foundation trust.

(2) The financial assistance may be given by way of loan, public dividend capital, grant or other payment.

(3) The Secretary of State may guarantee the payment of any amount payable by an NHS foundation trust under an externally financed development agreement.

  • "Externally financed development agreement" has the same meaning as in section 1 of the National Health Service (Private Finance) Act 1997 (c. 56), reading references in subsections (3) and (5) of that section to the trust as references to the NHS foundation trust.

12 Prudential borrowing code

(1) The regulator must make a code for determining the limit on the total amount of the borrowing of any NHS foundation trust.

(2) In making the code the regulator is to have regard (among other things) to any generally accepted principles used by financial institutions to determine the amounts of loans to non-profit making bodies.

A body is non-profit making if it does not carry on activities for the purpose of making profits for distribution to its members or others.

(3) Before making the code, the regulator must consult--

(a) the Secretary of State,

(b) every NHS trust intending to make an application to become an NHS foundation trust,

(c) such other persons as the regulator considers appropriate.

(4) The regulator must lay a copy of the code before Parliament.

(5) The regulator may revise the code; and subsections (2) to (4) apply in relation to revising the code, but the regulator must also consult every NHS foundation trust.

13 Public dividend capital

(1) Where an NHS trust becomes an NHS foundation trust, the amount which was the public dividend capital of the trust immediately before the giving of the authorisation continues as public dividend capital of the NHS foundation trust held on the same conditions ("initial public dividend capital"), but subject to this section.

(2) Any amount issued to an NHS foundation trust as public dividend capital under section 11 is (like initial public dividend capital) an asset of the Consolidated Fund.

(3) The Secretary of State may, with the consent of the Treasury, decide the terms on which any public dividend capital of an NHS foundation trust is to be treated as having been issued.

(4) But the dividend to be paid by the trust is to be the same as that payable by NHS trusts in England in pursuance of section 9(7) of the 1990 Act (dividend on public dividend capital).

(5) Before exercising the power in subsection (3), the Secretary of State must consult the regulator.

(6) Any amount paid to the Secretary of State by an NHS foundation trust by way of repayment of public dividend capital is to be paid into the Consolidated Fund.



Functions

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14 Authorised services

(1) An authorisation must authorise the NHS foundation trust to provide goods and services for purposes related to the provision of health care.

(2) But the authorisation must secure that the principal purpose of the trust is the provision of goods and services for the purposes of the health service in England.

(3) The trust may also carry on activities other than those mentioned in subsection (1), subject to any restrictions in the authorisation, for the purpose of making additional income available in order to carry on its principal purpose better.

(4) The authorisation may require the provision, wholly or partly for the purposes of the health service in England, of goods and services by the trust.

(5) References in this Part to goods and services include, in particular--

(a) education and training,

(b) accommodation and other facilities.

(6) The authorisation must authorise and may require the trust--

(a) to carry out research in connection with the provision of health care,

(b) to make facilities and staff available for the purposes of education, training or research carried on by others;

and, in deciding how to exercise its functions under this subsection in a case where any of the corporation's hospitals includes a medical or dental school provided by a university, the regulator is to have regard to the need to establish and maintain appropriate arrangements with the university.

(7) In deciding whether or not to require the trust to provide, wholly or partly for the purposes of the health service in England, any goods or services the regulator is to have regard (among other things) to--

(a) the need for the provision of goods or services in the area in question,

(b) any provision of goods or services by other health service bodies in the area in question,

(c) any other provision by the trust with which the provision of the goods or services is connected,

(d) any agreement or arrangement to which the body corporate which is the trust is or was a party.

(8) Such a requirement as is mentioned in subsection (4) may be framed by reference (among other things) to--

(a) goods or services in general or of a particular description,

(b) goods or services required to meet the needs of health service bodies in general or those of a particular description,

(c) goods or services required to meet the needs of other persons of a particular description,

(d) the volume of goods or services provided,

(e) the place where goods or services are provided,

(f) the period within which goods or services are provided.

15 Private health care

(1) An authorisation may restrict the provision, for purposes other than those of the health service in England, of goods and services by an NHS foundation trust.

(2) The power is to be exercised, in particular, with a view to securing that the proportion of the total income of an NHS foundation trust which was an NHS trust in any financial year derived from private charges is not greater than the proportion of the total income of the NHS trust derived from such charges in the base financial year.

(3) The base financial year means the first financial year throughout which the body corporate was an NHS trust or, if it was an NHS trust throughout the financial year ending with 31st March 2003, that year.

(4) Private charges means charges imposed in respect of goods and services provided to patients other than patients being provided with goods and services for the purposes of the health service.

(5) Section 14(8) applies for the purposes of this section.

16 Protection of property

(1) An NHS foundation trust may not dispose of any protected property without the approval of the regulator.

Disposing of property includes disposing of part of it or granting an interest in it.

(2) Protected property is property of the trust designated as protected in its authorisation.

(3) The regulator may designate property as protected if it considers it is needed--

(a) for the purposes of any goods or services which the authorisation requires the trust to provide wholly or partly for the purposes of the health service in England, or

(b) for the purpose of doing anything which the trust is required to do under section 14(6).

(4) The regulator may give approval under subsection (1) on any terms it considers appropriate.

(5) An NHS foundation trust may not create a floating charge on its property.

17 Financial powers

(1) An NHS foundation trust may borrow money for the purposes of or in connection with its functions.

(2) But the total amount of the trust's borrowing is subject to the limit imposed by its authorisation.

(3) The limit must be reviewed annually by the regulator.

(4) An NHS foundation trust may invest money (other than money held by it as trustee) for the purposes of or in connection with its functions.

(5) The investment may include investment by--

(a) forming, or participating in forming, bodies corporate,

(b) otherwise acquiring membership of bodies corporate.

(6) An NHS foundation trust may give financial assistance (whether by way of loan, guarantee or otherwise) to any person for the purposes of or in connection with its functions.

18 General powers

(1) An NHS foundation trust may do anything which appears to it to be necessary or desirable for the purposes of or in connection with its functions.

(2) In particular it may--

(a) acquire and dispose of property,

(b) enter into contracts,

(c) accept gifts of property (including property to be held on trust for the purposes of the NHS foundation trust or for any purposes relating to the health service),

(d) employ staff.

(3) Any power of the trust to pay remuneration and allowances to any person includes power to make arrangements for providing, or securing the provision of, pensions or gratuities (including those payable by way of compensation for loss of employment or loss or reduction of pay).

19 Information

(1) An authorisation--

(a) must require an NHS foundation trust to disclose such information as the Secretary of State specifies to the regulator,

(b) may require an NHS foundation trust to disclose other information to the regulator.

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