Government to deliver all schemes in New Hospital Programme
Source: gov.uk (2025-01-20)

The government has confirmed  that all projects in the New Hospital Programme will be built.

- Plan for all hospital projects in the revamped New Hospital Programme to be delivered
- New plan sets out realistic and properly costed construction timeline
- Previous scheme was behind schedule, unfunded and undeliverable
The government has today confirmed funding and a realistic timetable to put the New Hospital Programme on track to deliver all of its hospital projects.

This credible timeline for delivery will ensure that staff and patients have access to the facilities they desperately need around the country as soon as possible.

It follows a review of the scheme (https://www.gov.uk/government/publications/new-hospital-programme-review-terms-of-reference) which found that the previous government’s commitment to deliver ‘40 new hospitals’ by 2030 was behind schedule, unfunded and therefore undeliverable.

In its annual report, published last week (16 January 2025), the Infrastructure Projects Authority (IPA) also deemed the previous scheme ‘unachievable’, rating the programme as red and highlighting major issues including with the schedule and budget. An independent IPA review upgraded the New Hospital Programme from a red to an amber rating last week, thanks to action taken to improve deliverability.

In May 2023, for example, the previous government announced that the programme was backed by over £20 billion of investment - but this funding was never delivered.

This government is committed to rebuilding our NHS and to rebuilding trust in government. The new plan, which is affordable and honest, will be backed with £15 billion of new investment over consecutive 5-year waves, averaging £3 billion a year.

Wes Streeting, Health and Social Care Secretary, said:

The New Hospital Programme we inherited was unfunded and undeliverable. Not a single new hospital was built in the past 5 years, and there was no credible funding plan to build 40 in the next 5 years.

When I walked into the Department of Health and Social Care, I was told that the funding for the New Hospital Programme runs out in March. We were determined to put the programme on a firm footing, so we can build the new hospitals our NHS needs.

Today we are setting out an honest, funded and deliverable programme to rebuild our NHS.

This government inherited buildings and equipment across the NHS that had been left to crumble, disrupting patient care and hindering staff.

As Lord Darzi found in his investigation, the NHS was starved of capital in the last decade, with £37 billion under-investment over the 2010s, leaving some hospitals with roofs that have fallen in, and leaking pipes which freeze over in winter.

Building an NHS estate that is fit for the future is key to the government’s Plan for Change (https://www.gov.uk/government/publications/plan-for-change) that will get the health service back on its feet and see waiting times slashed. At the budget, the Chancellor announced that health capital spending in the NHS is set to increase to record levels of £13.6 billion in 2025 to 2026.

For schemes that were out of scope of the review, those already with approved full business cases will continue as planned and are already in construction (wave 0).

The remaining schemes will be allocated to one of 3 wave groups:
- schemes in wave 1 are expected to begin construction between 2025 and 2030. These schemes include hospitals constructed primarily using reinforced autoclaved aerated concrete (RAAC), and have been prioritised as patient and staff safety is paramount
- schemes in waves 2 are expected to begin construction between 2030 and 2035
- schemes in wave 3 are expected to begin construction between 2035 and 2039
Hospitals in later waves will be supported on their development and early construction work before then, to ensure that they are ready for main construction.

The plan for implementation sets out a clear pipeline of schemes to be delivered over the next decade and beyond. The New Hospital Programme will continue to work closely with industry to support construction, develop relationships and secure investment within the supply chain.

Morag Stuart, Chief Programme Officer for the New Hospital Programme, said:

This announcement by the Department of Health and Social Care provides certainty on the next steps for the New Hospital Programme.

We will continue to work with local NHS organisations to deliver improvements to hospitals across England, including making best use of new technology and improving layouts - and ensuring future hospitals are designed to meet the needs of patients and staff.

The New Hospital Programme is just one part of the government’s wider commitment to transforming the NHS estate. Over £1 billion has been set aside to make inroads into the existing backlog of critical maintenance, repairs and upgrades, while £102 million has been dedicated for upgrades to GP surgeries across England as a first step towards transforming the primary care estate.

This refreshed and honest direction for the New Hospital Programme will transform the provision of hospital healthcare, to build an NHS fit for the future.

Background information

The plan for implementation is available at: New Hospital Programme review outcome (https://www.gov.uk/government/publications/new-hospital-programme-review-outcome).

The IPA’s assessment of the previous New Hospital Programme is available in the IPA annual report 2023 to 2024 (https://www.gov.uk/government/publications/infrastructure-and-projects-authority-annual-report-2023-24).

As with all government capital budgets, the exact profile of funding will be confirmed in rolling 5-year waves at regular Spending Reviews.