Government unveils extra funding for hospital redevelopment project
Laing O鈥橰ourke鈥檚 Royal Sussex County Hospital project in Brighton has been given an extra 拢60m by the Department of Health (DoH) due to inflationary pressures.
The scheme, which involves specialist tertiary, trauma and teaching facilities, was budgeted at 拢420m in the outline business case in 2009.
However, inflation has increased the project鈥檚 price tag to 拢480m, which the government has agreed to meet.
Health secretary Jeremy Hunt said: 鈥淚 can today reiterate the government鈥檚 commitment to this scheme and say that my department has earmarked the funding for the inflationary impact on the scheme, meaning around 拢480m is now set aside for this project.鈥
A spokesman for Brighton and Sussex University Hospitals NHS Trust said: 鈥淭he figure of 拢420m, set in 2009, went into the outline business case that was approved in May 2014.
鈥淭he change in the figure reflects the upturn in the economy, changes in construction costs, VAT, equipping costs, historical inflation since the original budget was set and predicted inflation till programme end in 2023.鈥
A spokeswoman for the DoH said: 鈥淪ince May 2014, the trust has been working to develop the proposal and costings with the lead contractor. This has shown an increase in the costs of the scheme.
鈥淭he trust will now be able to conclude design work and finalise the costs safe in the knowledge that the funding is secure.鈥
The final business case, which prices the scheme at 拢480m, still has to be approved by the treasury, the trust spokesman added.
Laing O鈥橰ourke began work on the 3Ts Redevelopment, as the scheme is known, last September.
The preparatory phase, due to complete in autumn 2015, involves construction of two temporary buildings to house clinical services and three wards during the redevelopment.
Work on the main hospital building is expected to start in early 2016.
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