According to the memo, which has been published by the Conservative Party, (PFI) funding is likely to dry up because the ongoing credit crunch is preventing banks lending money.
The memo was from the desk of Graham Eccles, chair of the South East Coast Strategic Health Authority and documented a meeting between health secretary Alan Johnson, government officials and other regional NHS health chiefs earlier this month.
Mr Eccles said: ‘The bad news is around capital schemes that would have been PFI's. PFI's have always been the NHS's "Plan A" for building new hospitals, especially as they used to be off-balance sheet. There was never a "Plan B".
‘Now none of the banks have any money or a likely to have any for a few years, the absence of a "Plan B" is going to cause a real problem in taking new hospitals to conclusion.’
The memo also warns that government funding for the NHS is going to be ‘very tight’ from 2010 because of the credit crunch.
Related article from nursingtimes.net: New Glasgow hospital will be publicly funded