Government defeat over NHS devolution 'safeguards'

NHS trusts would be run by the region's councils and health groups under the plan

The government has been defeated in the Lords over the process for devolving NHS budgets to English councils.

Peers backed a cross-party amendment to the Cities and Local Government Devolution Bill urging "safeguards" for the NHS' national characteristics.

The amendment proposed by Labour peer Lord Warner passed by 217 votes to 152.

It will stop the transfer of regulatory functions held by national bodies and ensure transferred services "adhere to national service standards".

The defeat was the second of the day for the government in the Lords, where it does not have a majority.

Ministers argued the amendment was unnecessary because the duties and responsibilities of the health secretary with regard to NHS services would remain in place after budgets are devolved to new combined council groups in Greater Manchester.

From next April, £6bn in NHS and social care budgets will be handed to local councils in the region and ultimately to the Greater Manchester Metro mayor. The initiative has been hailed by Chancellor George Osborne as a landmark moment in Whitehall decentralisation and the development of a Northern Powerhouse.

'Clear safeguards'

But, during a debate on the third reading of the bill which paves the way for the move, peers were told that nothing must be done to undermine the "essential national nature" of the health service.

Proposing his amendment, Lord Warner - a health minister in the last Labour government - said: "I am not opposed to using this bill for devolving NHS functions to properly accountable combined authorities.

"I just want some clear safeguards that recognise some essential national characteristics of the NHS continuing to function."

He won support for his amendment from Labour, Lib Dem and crossbench peers.

But communities and local government minister Baroness Williams said the change was inappropriate as there was no intention to "dismantle" the government's ultimate accountability for the provision of health services.

Whatever "bespoke arrangements" were agreed with a particular local area that principle would remain, Lady Williams added.

The vote could be overturned when the bill makes its way to the House of Commons in the autumn.

Earlier on Tuesday, the government was also defeated in a vote over its plans for so-called English votes for English laws.