Sir Stephen Bubb has said he is hopeful that an ongoing governance review of NHS charities could ensure that their funds will not be included on NHS balance sheets after all.

In June, the Treasury announced it intends to press ahead the plans, despite opposition from the Association of NHS Charities, Acevo and the Charity Commission.

However, the governance of NHS charities is now being considered by the Department of Health, and the Acevo chief executive told civilsociety.co.uk that he had received positive signals that this may include reforms to prevent the change.

“The ideal position is that we reform the legislation so we make those charities more independent. One of the problems is that the way their governance is structured is that they are part of the state.

“What we’ve said to the Department is we’ll work with them on that. If they can get that legislation through in time then it resolves the problem; if they can’t then we’re suggesting that they should extend the deadline.

“It’s always been slightly odd that the hospitals have the right to appoint trustees; ideally you want charities to be independent.”

He added: “In the discussions I’ve had with the Department they think that’s a good outcome; we’ve had very positive indications from them.”

Consolidation "not the driver" for reforms

Meanwhile, Amanda Witherall, director of the Association of NHS Charities, struck a more cautious note, saying it was too early in the consultation process to judge whether there would be a change in this area.

She added: “We wouldn’t back a change just to avoid consolidation. We don’t agree with the decision, we never did and issued a dissenting report, but NHS charities can take steps to avoid consolidation now.

“There may be a consequence of these changes, if indeed there are any changes, but the consolidation issue is not the driver.”

A spokesman for the Department of Health said: “We will look at all aspects of current regulation in an open way, including the process of appointment of trustees, but we have not yet looked at any specific proposals.”