Construction on the new state-of-the-art University Hospital Monklands has been put on hold due to the Scottish Government’s two-year freeze on NHS builds.
NHS Lanarkshire told Building Better Healthcare that “as of 2023, the estimate for construction cost alone was £700m.
“This does not include equipment costs, any future inflation costs or VAT (Value Added Tax) etc,” NHS Lanarkshire stated.
The Scottish Government’s decision
The Scottish Government’s decision to delay NHS builds was due to a cut in its capital budget.
A Scottish Government spokesperson said: “As set out in our draft budget the capital funding position is extremely challenging.
“The UK Government did not inflation-proof its capital budget which has resulted in nearly a 10% real-terms cut in the Scottish Government’s capital funding over the medium-term between 2023-24 and 2027-28.
“Our emphasis for the immediate future will be on addressing backlog maintenance and essential equipment replacement.”
The Scottish Government’s Infrastructure Investment Plan (2021-22 to 2025-26) identified the priority health capital projects for funding within that period.
The Scottish Government has advised boards to pause any new capital projects
As a result of the cut in the Scottish Government’s capital budget, “a revised pipeline of infrastructure investment will be published in Spring 2024,” the Scottish Government’s spokesperson said.
"All due consideration will be given to what projects can be included within that revised Plan to ensure it is affordable and deliverable, while providing the best value for money,” the Scottish Government’s spokesperson continued.
In the interim, the Scottish Government has advised boards to pause any new capital projects.
Any RAAC found in the NHS estate is managed in line with the advice of the Institution of Structural Engineers
However, the Scottish Government “is in active discussions with NHS Lanarkshire on the impact of this budget settlement on the proposal to replace University Hospital Monklands and an updated position is expected next month,” according to the Scottish Government’s spokesperson.
The Scottish Government is also currently focused on mitigating the risk of RAAC found on the existing estate.
“Our focus on the existing estate includes taking action to mitigate the risk of RAAC.
“Any RAAC found in the NHS estate is managed in line with the advice of the Institution of Structural Engineers,” the Scottish Government’s spokesperson concluded.
The Monklands Replacement Project
A new state-of-the-art University Hospital Monklands was set to replace the existing Monklands Hospital on a new site.
The current Monklands Hospital is more than forty years old and its infrastructure cannot adapt to the rapidly modernising healthcare environment.
The new University Hospital Monklands will support NHS Lanarkshire to meet the objectives set out in its healthcare strategy, which includes:
- Reduce inpatient treatment to day cases
- Outpatient and community care
- Develop pan-Lanarkshire hospital centres of excellence
- Support the healthcare needs of the wider West of Scotland.
Part of this process is having ongoing discussions with the Scottish Government regarding the budget for the project which will be finalised as part of the FBC process
Colin Lauder, Director of Planning, Property and Performance at NHS Lanarkshire, said: “NHS Lanarkshire remains fully committed to the new Monklands Replacement Project with Outline Planning Permission given last year.”
“We are continuing to work on developing a Full Business Case (FBC). Part of this process is having ongoing discussions with the Scottish Government regarding the budget for the project which will be finalised as part of the FBC process. We are aiming to have the FBC complete during 2025.”
Keppi Designs designed the new state-of-the-art University Hospital Monklands in collaboration with NHS Lanarkshire.
Laing O’Rourke, a UK-based construction company, is the construction partner on this project.
