“Tory plans to abolish the limit on how much hospitals are allowed to borrow,
could lead to financial ruin and hospitals or vital equipment falling into the
hands of creditors” said UNISON, the UK’s largest health union today (13
April). The union is appalled by the possibility of unfettered borrowing
leading to hospitals going bust; because of Tory party plans to do away with
the “prudential borrowing code”.
Karen Jennings, UNISON Head of Health, said:
“The Tories secret plans show they are reverting to type by allowing a
borrowing free for all. It’s all very well saying that hospitals will have
“autonomy and accountability” but if they borrow heavily against their assets
and can’t repay the debt, commercial lenders could simply send in the
bailiffs. The current financial crisis shows that even large banks and lenders
can get into serious difficulties and will call in loans to save their own skins.
“Financial institutions will see hospitals as safe bets for loans, as they own
prime assets. However, NHS hospitals belong to us all and we should not
allow the future healthcare of local communities to be mortgaged. Anyone
who has ever taken out such a loan knows the small print at the bottom
reads “your property is under threat if you do not keep up your repayments” –
this cannot be allowed to happen to our hospitals.”