“Contrary to reports in some newspapers, there is no question whatsoever of 'privatising' the NHS. This Government is committed to a publicly-funded health service that is free at the point of use and available to all, regardless of means.

Primary Care Trusts are and will remain public, statutory bodies responsible for using their growing budgets to commission the best possible services for local people. They can never outsource this responsibility, or ask others to make these decisions for them.

Some PCT's have indicated that, to support them in their task , they would like to consider the possibility of buying in some management and support services, including the detailed data analysis that helps to underpin sound commissioning. In order to give PCT's this option, the DH intends to place a national framework contract with suitably qualified providers.

There is no obligation on any PCT to use such services; each PCT Board will make its own decision following appropriate local consultation. Our intention is that those PCT's that wish to go down this road will be able to activate a call-off contract quickly and cheaply, without the need to go through expensive and time-consuming local tenders.

Most PCT's also employ district nurses, health visitors and many other frontline staff who provide vital clinical services. They are not affected in any way.

The OJEU document which inspired these news paper reports contained drafting errors and therefore did not accurately reflect Government policy, which is why it was withdrawn immediately. Our policy was set out in the White Paper Our health, our care, our say earlier this year, when we said: "There is no requirement or timetable for PCT's to divest themselves of provision."

The Department of Health will be issuing new tender guidance that accurately reflects our policy.”