NHSScotland 2020 Local Delivery Plan Guidance

5. LDP Financial Plans

Financial planning to underpin improvement

The Draft Budget 2014-15 sets out NHS Board allocations. Final NHS Board allocations will be agreed through the Scottish Budget. Financial planning is an integral component of LDPs. To ensure that Boards plan over the longer term, financial plans are generally required for a three year period. However, a five year plan is required where any of the following apply: major infrastructure development, brokerage arrangements are in place, underlying deficit of over 1% of baseline resource funding, major service redesign. In terms of capital, a five year plan is required from all Boards. Boards are notified individually regarding the period of their financial plan. NHS Boards must include draft financial plans as part of their LDP submission, in line with the timetable presented. In particular, NHS Boards are asked to complete the financial templates and provide a supporting narrative. Particular emphasis should be placed on workforce planning and NHS Boards should provide assurances that their proposed workforce requirements are driven by and reflect service change and are affordable. The detailed financial information included in the templates will be used to assess each Board's financial projections, including key risks/assumptions, to ensure achievement of financial targets. Monthly performance assessment of the agreed financial plan / trajectories will continue to be based on the monthly Financial Performance Returns.

Delivering efficiency savings and increasing the pace on shared services

The Scottish Government is supporting NHS Boards to improve the quality of services, and to eliminate waste and variation. As part of the Financial Plans efficiency savings are required to be categorised by seven themes: Service Productivity, Drugs and Prescribing, Procurement, Workforce, Shared Services, Support Services, and Estates and Facilities. In addition, boards are expected to increase the pace of delivery on shared services and continue to make progress in energy efficiencies.