The government has today (July 8) published a new, longer-term plan to modernise NHS buildings, upgrade GP surgeries and bring more care closer to home for patients. The plan, backed by a capital budget that will rise to £15 billion in 2029/30, sets out plans for rebuilding, renewing and modernising the NHS.
The 10 Year Plan replaces years of short-term, stop-start investment with a longer-term approach, which the government hopes will help the health service deliver major projects that modernise facilities, upgrade technology and deliver better care for patients.
The plan also sets out how unused NHS land can be turned into affordable homes for healthcare workers. Nurses, porters, healthcare assistants and other NHS staff will be able to rent homes close to the hospitals where they work, helping them spend less time commuting and making it easier for the NHS to recruit and keep staff in areas where housing costs are highest.
Crumbling estate
The government’s announcement acknowledges that much of the NHS estate is in a perilous condition, demonstrating the success of efforts of the broader estates and facilities community, led by the national team at NHS England, to raise awareness of the consequences of this on patient care. Last year alone, leaking roofs, broken heating systems, electrical faults and other building failures caused more than 4,100 disruptions to patient care, including cancelled appointments and delayed treatment.
In the 2025 ERIC data, backlog maintenance rose to a new record of £15.9 billion, and it is expected to rise again in the 2026 return. “Too many NHS buildings are crumbling and outdated,” says Minister of State for Health, Karin Smyth.
To start addressing this problem, the government is investing at least £6.75 billion over the next nine years to repair hospitals, replace unsafe buildings and tackle the maintenance backlog, reducing the disruptions that can lead to cancelled appointments and delayed treatment.
Hospitals affected by Reinforced Autoclaved Aerated Concrete (RAAC) will benefit from a £2 billion programme to remove RAAC and keep patients and staff safe.
The plan also confirms the government will deliver 250 Neighbourhood Health Centres. Bringing together GPs, diagnostic tests, community and other services under one roof, they will make it easier for patients to get the care they need closer to home instead of travelling to hospital.
Alongside improvements to buildings, the plan invests in better technology across the NHS. This includes improving the NHS App, introducing a Single Patient Record so patients do not have to repeat the same information to different parts of the health service, and replacing outdated systems that keep staff tied up with paperwork, and away from patients.
System change
The government is also making it quicker to get NHS building projects off the ground.
Instead of waiting for repeated Treasury sign-off, projects worth up to £300 million will be approved by the Department of Health and Social Care and the NHS. Projects will only need to return to the Treasury if costs rise above £1 billion or their scope changes significantly.
Together with long-term funding settlements, the changes will cut red tape, speed up decisions and help hospitals get on with improving buildings, replacing equipment and delivering better care sooner.
Ownership of more NHS buildings and land will be handed from NHS Property Services to local NHS organisations, giving them greater control over how their estates are managed and developed to meet local needs.
Overall, the reforms aim to give construction firms and technology companies a clearer pipeline of future NHS projects, giving them the confidence to invest in people, skills and innovation while helping deliver better value for taxpayers.
The plan also sets out the government’s commitment to research and development capabilities, including a £650 million investment in genomics over the next five years. It supports national preparedness through investment in cyber resilience, biosecurity and the new National Biosecurity Centre, helping to protect the country against future health and security threats.
Sir Ciarán Devane, Chief Executive of The NHS Alliance, says: “Our members will welcome the government’s focus on long-term NHS capital investment. Multi-year funding, faster approvals and investment in GP premises and technology will help NHS leaders continue to plan more effectively, start to modernise facilities, further improve productivity and above all, enhance patient care.”
