The Pharmaceutical Journal
Vol 274 No 7342 p353
26 March 2005

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DoH arm’s-length body cuts will save £150m over next year

Planned cuts in the number of “arm’s-length bodies” attached to the Department of Health will save £150m in the coming financial year. The money is to be redirected into NHS services.

In the long run, the overall saving achieved by halving the number of arm’s-length bodies, such as the National Institute for Clinical Excellence and the Family Health Services Appeal Authority, is expected to reach £500m a year.

Changes to be made in 2005–06 include merging the Health Development Agency and NICE. The FHSAA will be dissolved and have its functions transferred to the NHS Litigation Authority. The National Clinical Assessment Authority will be dissolved with its functions being transferred to the National Patient Safety Agency. The NHS Modernisation Agency and the NHS “university” will also be dissolved.