Over half (54%) of NHS senior leaders lack confidence in combining multiple sources of funding, with 1 in 4 saying they’re not confident at all*
We all know NHS budgets are tight, and capital funding is limited, meaning that you need to look elsewhere to fund your projects and get approval.
But it’s also important to make sure you can cover unexpected costs that emerge during the development process without halting the project. Like changes to designs of heritage sites after consultations with statutory stakeholders or surprise environmental incidents like finding asbestos in a building.
There are many reasons why your estates project may need multiple combinations of capital funding streams.
This, however, isn’t without risk. The more elements of funding you add, the more challenging it is to get all those pots of funding together at the same time when you need it to deliver your scheme.
That's why our estates experts have shared their insights and top tips to help you take a more strategic approach to combining multiple funding streams.
Here are 5 top tips from our experts.
- Be aware of different funding sources, and have confidence in them
Don’t just focus on the most obvious source of funding – there are some lesser-known funding streams that can make a big difference. By staying informed and engaging with partners, you can discover opportunities that might not have been on your radar.
For example, local authorities offer developer contributions that you can bid for. You can find the scale and type of funding available in your area by accessing the Council’s Annual Infrastructure Funding Statement through your local planning authority’s website. Read blog for 5 top tips to help you secure developer contribution funding. - Understand the limitations of different funding sources
Each funding source comes with its own rules, restrictions and timeframes. Understanding these limitations and complexities early on can help you avoid roadblocks later that could hold up your project at a critical time.
Some funding schemes are timebound, meaning the money is only available for a short period of time. This is one of the biggest challenges - being able to deliver a multi-year project. While others are restricted to specific types of projects. - Tackle projects in phases
If securing full funding upfront isn’t possible, consider breaking your project into smaller, manageable phases. Accessing smaller funding pots at different stages can be easier to coordinate while keeping the momentum going.
4. Align your funding strategy with your estate strategy
To deliver your estate strategy, you need a clear funding strategy. Understanding what funding your projects need and remaining aware of available opportunities will help you plan ahead. The more prepared you are, the faster you can secure funding when opportunities arise.
5. Consider creating internal funding streams
Reaching net zero carbon and preparing buildings for the future is vital. To help make sure your projects support your long-term goals, consider creating an internal funding stream. For example, our Regional Energy and Efficiency Fund (REEF) pays the difference on projects that are already going ahead to ensure that the outcome is more sustainable. This removes the upfront cost barriers for greener options.
For example, you may have budgeted to replace an end-of-life gas boiler with a new gas boiler, but the REEF can supplement this budget to allow you to invest in an alternative heating system that doesn’t rely on gas or oil as fuel. Read chapter 5 in our guide to NHS estate funding to learn more.
Want more on NHS estate funding?
For more comprehensive advice on funding your NHS estate and the options available to you, download our NHS Estate Funding Guide. It’s packed full of practical insight and advice on how to get the most from different capital and revenue funding options.
*That’s what we learnt from our recent survey with finance and estates leaders (in partnership with the Health Service Journal (HSJ) . Full report here.
