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LMC February 2005 Newsletter

Premises Rent Increases

The GPC is investigating concerns raised by LMCs about reports received from PCTs that, from next year, rent increases for practices will not automatically be funded, and the further rumours circulating that PCTs will not continue to automatically review rents every three years.

The GPC believes that there is an unequivocal state-ment (para 42) in the NHS (General Medical Service - Premises Costs) (England) Directions 2004 which al-lows for this. This states that:

42. Where a PCT grants an application of the type mentioned in direction 41, subject to the following pro-visions of this Part, the amount that it must pay to a contractor in respect of notional rent is the current market rental value of its practice premises, as deter-mined in accordance with Parts 1 and 3 of Schedule 2. The PCT must review this amount as part of a three yearly review of the contractor’s notional rent, alt-hough this review may be brought forward if–

(a) there is a change to the purposes for which the premises are used;

(b) there is further capital investment in the premises, and payments are to be made to the contractor in

respect of that investment under its GMS contract.

The Department are checking with their premises


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