NHSScotland Local Delivery Plan Guidance 2015-16

4. Financial Planning

It is recognised that there are specific cost pressures that will need to be managed within the context of Boards' achieving financial balance in 2015/16. The Draft Budget 2015/16 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 or 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. Financial templates will also include plans for efficiency savings. All savings are retained locally by territorial Boards to reinvest in front‑line services which directly benefit patients.