EDM 802 - NHS Wholly-Owned Subsidiary Companies

Parliamentary Private Secretaries do not, by convention, sign any Early Day Motions / formally support such campaigns, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.
 
I appreciate your concern about the establishment of wholly-owned subsidiary companies in the NHS, however I would like to assure you that these companies are being established by local NHS organisations in the interests of patients, and have nothing to do with the supposed privatisation of the health service. 
 
Local NHS organisations are responsible for deciding the most appropriate ways in which they provide health services to their patients. To date, wholly-owned subsidiary companies in the NHS have provided back office support services including facilities management.
 
I understand that these companies are subject to normal rules regarding taxation and VAT, and that the Government has no interest in allowing NHS trusts to avoid their tax responsibilities through these companies. Furthermore, any staff compulsorily transferred from NHS employment to that of a new subsidiary company will have their pay, conditions, and continued access to the NHS Pension Scheme continued and protected, as is mandated by the Government's Fair Deal Guidance. 
 
The establishment of these companies is in no way related to the supposed privatisation of NHS services, and I believe it amounts to irresponsible scaremongering to suggest this is the case. Local health commissioners have the responsibility to commission the most appropriate services for their populations. As things stand, only 7.7 per cent of NHS services are provided by the independent sector, and I can assure you that NHS services will remain free at the point of use.