The government is set to finish only 32 of its promised new 40 hospitals by 2030 as part of an over-budget and hard-to-deliver scheme, that might result in medical facilities that are “too small”, according to a “damning” report.
The National Audit Office (NAO) has completed an investigation into the programme, initiated by the 2019 Conservative manifesto and reaffirmed in October 2020.
The report lays out myriad difficulties the government faces in completing a promise first made by Boris Johnson and often repeated by the Conservative Party since.
The investigation found the government is now set to miss the 40 hospitals by 2030 pledge – with at least eight facilities set to miss the close of the decade target, and it has also highlighted problems with a government plan to use mass-produced, preconstructed hospitals that could see patients unable to be treated.
Shadow health secretary Wes Streeting branded the results “shocking” and “damning”.
Image: A map showing the location of the 40 new hospitals. Pic: National Audit Office
The promise
One of the central tenants of Mr Johnson’s 2019 election win was a pledge to build 40 new hospitals.
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Even at the time, there were questions about what this actually meant and how achievable it was.
In October 2020, Mr Johnson said he wanted to build the new hospitals by 2030. In November 2020 Rishi Sunak – then chancellor – told parliament they were increasing capital spending to “fund the biggest hospital building programme in a generation – building 40 new hospitals and upgrading 70 more”.
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The NAO points out that, after Mr Sunak made that announcement, the definition of a new hospital was changed to include a whole new hospital, a new clinical building or wing, or a major refurbishment and alteration of “all but the main structure of an existing hospital”.
The audit also points out that, at the time of Mr Johnson’s October commitment, “for most of the schemes the issue of affordability had not yet been considered”.
The report states the scheme to build the 40 new hospitals by 2030 was always “likely” to change the timescale or scope, and “this was not made clear to the public at the time”.
Image: Health Secretary Steve Barclay at one of the few finished hospitals
What is being built?
The scheme was initially split into four cohorts, although this was later expanded to five.
A total of 48 hospitals make up the cohorts, as there are eight facilities which already had plans in place.
Of the eight projects in the first cohort, only one counts towards the total of 40 – as the other seven were already in progress.
The other four cohorts are not set to start construction until at least next year, with one of the cohort two projects also making up the eighth previously planned hospital.
Cohort three and onwards are set to use “hospital 2.0” guidelines – where blueprints of the hospitals and construction are standardised and partially made off-site.
The plans for this project have not yet been published, and there are concerns from the construction sector about whether it will be feasible to build.
Furthermore, the NAO criticised a lack of transparency in how the 40 new projects were chosen, saying there was “a failure in record keeping” and they cannot say how the hospitals were chosen.
Image: Boris Johnson promised the hospitals in 2019 and again in 2020
Hospitals ‘too small’
As part of its design for the new “hospital 2.0”, the government came up with plans for what would be the minimum viable hospital – the cheapest functioning facility.
But the NAO states that this specification risks being “too small”, and the estimated capacity of new hospitals is based on assumptions that “may be unrealistic” about the number of people able to be moved out of hospitals for social care.
And estimates by the government that average stays will fall by 12% “seem poorly supported by the evidence”.
Furthermore, when the Department for Health and Social Care went to the Treasury for funding, it asked for £21.3bn, but was instead given £18.5bn.
In order to find savings, the government may need to move even more schemes into the 2030s, or lower the lowest specification of the new-style hospitals further to save money, the NAO said.
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One of the key factors in the delays, according to the NAO, is issues with reinforced autoclaved aerated concrete.
This material, used extensively, has now been found to be unsuitable for building past around 30 years.
As announced earlier this year, an extra five hospitals with the concrete have been added to the new hospitals scheme.
According to the NAO, only 32 of the previously promised hospitals will now be complete by 2030 to make space for the new five projects – and the eight others will be finished in the next decade.
Even this estimate is generous, as it includes regenerating facilities not previously included and splitting one project into two parts to up the figures from 31 to 32.
A lack of construction contractors has also been raised – with infrastructure projects like HS2 and a lack of clarity over what the designs will be causing uncertainty.
Image: Projects like HS2 are taking up building resources
When will they be built, and how much will it cost?
The NAO has taken an estimate of costs and time frames.
Back in 2020, the government estimated it needed between £20bn and £30bn to build the 40 hospitals promised – plus the eight already started – by 2030.
It wanted between £3.7bn and £16bn for the first five years – and was given £3.7bn by the Treasury under Mr Sunak.
As such, a decision was taken to do smaller projects first and aim at completing large ones later in the decade.
In the first three years, “slow progress” was made on the hospitals – but three opened by June of this year, although none of them were part of the 40 new hospitals.
The other five suffered delays of between one and 16 months.
Cohort two was expected to start in 2022, but as of May 2023 no building had started, although £11m of preconstruction work had taken place.
The first of the 40 new hospitals is expected to open in late 2023, and the second in late 2025.
Cohorts three and four were expected to start in 2025, and the fifth later in the 2020s.
Now, the NAO reckons Cohort three will not open until 2029 or 2030.
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2:25
The state of the NHS explained
In terms of cost, both cohorts one and two have risen by almost 50%, overrunning by a total of £1.2bn.
On top of the £3.7bn for the first half of the 2020s, the Treasury has indicated it will supply £18.5bn for the rest of the scheme – but this was only up to 2031, and with the overrun more money could become available.
Inflation will also eat into the budget, and the NAO suggest the Treasury and health department might have to renegotiate the budgets.
Gareth Davies, the head of the NAO, said: “The programme has innovative plans to standardise hospital construction, delivering efficiencies and quality improvements. However, by the definition the government used in 2020 it will now deliver 32 rather than 40 new hospitals by 2030.
“Delivery so far has been slower than expected, both on individual schemes and in developing the hospital 2.0 template, which has delayed programme funding decisions.
“There are some important lessons to be drawn for major programmes from the experience of the New Hospital Programme so far. These include strengthening the business case process to improve confidence on affordability and delivery dates, and improving transparency for key decisions.”
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1:57
Blair on current state of NHS
Shadow health secretary Wes Streeting said: “This shocking report could not be more damning of the failing new hospitals programme.
“The so-called 40 new hospitals are over-budget, behind schedule, and may be too small. Many are not ‘new’, others are not ‘hospitals’, and there aren’t 40 of them. In fact, just one hospital is on track to be built by the next election.”
A DHSC spokesperson said: “The NAO’s report acknowledges that despite changes to the original programme, 40 new hospitals are still expected to be delivered by 2030 and praises the programme’s innovative plans to standardise hospital construction, deliver efficiencies and improve quality.
“We remain firmly committed to delivering these hospitals, which are now expected to be backed by over £20bn of investment – helping to cut waiting lists so people can get the treatment they need quicker. Three new hospitals have already opened and more will open this year so patients and staff can benefit from major new hospital buildings, equipped with the latest technology.”
The cryptocurrency market may see a local bottom in the next two months amid global uncertainty over ongoing import tariff negotiations, which have been limiting investor sentiment in both traditional and digital markets.
US President Donald Trump is set to detail on April 2 his reciprocal import tariffs, measures aimed at reducing the country’s estimated trade deficit of $1.2 trillion in goods and boosting domestic manufacturing.
While global markets took a hit from the first tariff announcement, there is a 70% chance for cryptocurrency valuations to find their bottom by June, according to Aurelie Barthere, principal research analyst at the Nansen crypto intelligence platform.
The research analyst told Cointelegraph:
“Nansen data estimates a 70% probability that crypto prices will bottom between now and June, with BTC and ETH currently trading 15% and 22% below their year-to-date highs, respectively. Given this data, upcoming discussions will serve as crucial market indicators.”
“Once the toughest part of the negotiation is behind us, we see a cleaner opportunity for crypto and risk assets to finally mark a bottom,” she added.
“For the main US equity indexes and for BTC, the respective price charts failed to resurface above their 200-day moving averages significantly, while lower-lookback price moving averages are falling,” wrote Nansen in an April 1 research report.
“Fragile market psychology highlights the necessity of “good news,” mainly on US growth and on tariffs,” added the report.
Bitcoin needs to hold $82k amid crypto market “wait and see” mode: analyst
Investors are currently in “wait and see mode” and are hesitant to take on large positions as markets lack direction.
However, the Crypto Fear & Greed Index remained above the “extreme fear” mark for a third consecutive session, which suggests a marginal improvement despite continued caution, Stella Zlatareva, dispatch editor at digital asset investment platform Nexo, told Cointelegraph.
“This reinforces the view that markets are in a wait-and-see mode,” Zlatareva told Cointelegraph, adding:
“Bitcoin continues to consolidate within the $82,000 – $85,000 range after experiencing a period of directional recalibration in Q1. The asset is navigating this zone with key support at $82,000 and upside potential toward $86,500 and $90,000 if broader sentiment stabilizes.”
Other traders are awaiting a Bitcoin breakout above $84,500 as a signal for more upside momentum amid the ongoing tariff uncertainty.
Investment company VanEck filed to register a Delaware trust company for an exchange-traded fund (ETF) tracking Binance-linked BNB cryptocurrency.
VanEck, on March 31, registered a new entity under the name VanEck BNB ETF in Delaware, according to public records on the official Delaware state website.
In filing 10148820, the entity is registered as a trust corporate service company in Delaware, hinting at a potential spot BNB (BNB) ETF in the United States.
VanEck BNB ETF trust registration in Delaware. Source: Delaware.gov
According to social media reports, VanEck is the first company to propose a potential BNB ETF in the US, potentially signaling an expansion of BNB Chain — formerly known as Binance Chain — across traditional financial products in the market.
BNB ETP product already exists in Europe
While VanEck is the first to move toward a potential BNB ETF product in the US, similar products have been trading in Europe for several years.
Prominent European crypto asset manager 21Shares launched a BNB exchange-traded product (ETP) in Switzerland in October 2019, according to TradingView.
21Shares BNB ETP details. Source: TradingView
TradingView data suggests that 21Shares BNB ETP has only $15 million in assets under management (AUM), a 0.3% share of Switzerland’s total crypto AUM of $5.3 billion as of March 28, as reported by CoinShares.
The product reportedly saw a significant drop in fund flows in the past year, totaling 537 million euros, or $580 million.
What is BNB?
Formerly known as Binance Coin, BNB is the native digital asset of the BNB Chain, which is now described as a “community-driven and decentralized blockchain ecosystem for Web3 decentralized applications.”
BNB was launched by Binance in July 2017 as an ERC-20 token on the Ethereum blockchain as a tool to incentivize users to trade on their platform and pay for fees at a discounted rate.
Five top crypto assets by market capitalization. Source: CoinGecko
At the time of writing, BNB is the fifth-largest cryptocurrency asset by market capitalization, worth about $88 billion, according to CoinGecko.
Altcoin filings surge with Trump administration
VanEck’s BNB ETF trust filing is just one of many new US altcoin ETF filings and registrations that have followed Donald Trump’s presidential inauguration in January.
The US Securities and Exchange Commission and crypto exchange Gemini have asked to pause the regulator’s suit over the exchange’s Gemini Earn program, saying they want to discuss a potential resolution.
In an April 1 letter to New York federal court judge Edgardo Ramos, lawyers representing the SEC and Genesis requested a 60-day hold on the case and that all deadlines be pulled “to allow the parties to explore a potential resolution.”
“In this case, the parties submit that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be prejudiced by a stay,” the letter states.
The lawyers added that a stay was in the court’s interest as “a resolution would conserve judicial resources” and proposed that a joint status report be submitted within 60 days after the entry of the stay.
The SEC sued Gemini and crypto lending firm Genesis Global Capital in January 2023, alleging they offered unregistered securities through the Gemini Earn program.
In March 2024, Genesis agreed to pay $21 million to settle charges related to the lending program, but the enforcement case against Gemini remains outstanding.
Letter from SEC and Genesis Global requesting extension of stay. Source: CourtListener
The letter did not specify what a possible resolution would entail, but the SEC has dropped several lawsuits it launched against crypto companies under the Biden administration, including against Coinbase, Ripple and Kraken.
In February, Gemini said the SEC closed a separate investigation into the firm as the regulator winds back its crypto enforcement under President Donald Trump.
“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course, Gemini is not alone,” Gemini co-founder Cameron Winklevoss said at the time.
OpenSea, Crypto.com and Uniswap, among others, have also recently reported that the SEC had closed similar probes into their companies that were investigating alleged breaches of securities laws.