An extra £1.7bn in one-off payments will also be issued to PCTs. This will mean 82% of the NHS revenue budget will be managed by PCTs compared with 72% in 1996-1997.
Allocations for 2009-2010 and 2010-2011 will be announced by next summer, Mr Johnson added.
He said that PCTs will be tasked with focusing more on choosing their own local targets to match the health needs of their population.
Mr Johnson told MPs: ‘PCTs need to continue to improve understanding the particular needs of their local populations and take concrete steps to address them.’