Health secretary Patricia Hewitt yesterday announced details of an allocation of over ?2 billion worth of capital investment in health services over the next financial year. Capital funding is used to acquire and modernise buildings, land and equipment within the NHS and can only be used to fund these aspects.

These allocations represent an increase of almost 20 per cent over 2005-06. A quarter of this is made up in operational capital investment, which goes into NHS trusts and primary care trusts. Mental health trusts are also set to receive a 50 per cent average increase in operational capital compared to the previous financial year. This extra funding is in response to the need for a modernisation of mental health services as the estates are on average older than other parts of the NHS.

Funding is set to be given directly to NHS mental health trusts so that they can decide how best to modernise facilities. "Local NHS staff, who know the needs of local patients best, are best placed to make decisions about how to use this capital for investment in land, buildings and equipment," said Ms Hewitt. She went on to say that these levels of investment growth would help to deliver "modern, safe and efficient services" across the NHS.