Health care requires large and expensive buildings and sophisticated and costly equipment. This is particularly so in secondary care.

Large capital projects may extend over several years - planning, designing, funding, building and commissioning. Money will be paid out to contractors and professionals in stages and some form of planned capital programme is necessary to achieve this so that money does not run out during the construction.

The revenue budget is an annual allocation and most often based upon the previous years budget, the performance and the politics of health. 80% of revenue budgets are paid out in salaries for health care is a Service industry.

Capital schemes have revenue consequences - more staff to be employed, different use of resources, maintenance.This needs to be planned for as it is inept if a new building cannot be opened because there is no revenue to run it with.