Ministers will now consider the detailed recommendations of the NHS Scotland Resource Allocation Committee (NRAC) within the context of the forthcoming Spending Review.

In her initial response to the report, Health and Wellbeing Secretary Nicola Sturgeon today made clear that any adjustments that might be made to the 14 territorial Health Boards' funding would not only be phased in over a number of years, but that no Board would receive a cut in funding.

Sturgeon said: "Having been appointed by the previous administration in 2005, the Committee have undertaken a significant amount of work in assessing resource allocation across Scotland.  They have done this in a fair, objective and transparent manner, with the full engagement of stakeholders.

"The report raises some very important issues which must be considered within the context of the current Spending Review. 

"I can confirm today that, if we decide to make any adjustments in Health Boards' relative funding, no Board would receive less funding than it does at present and any changes would be phased in over a number of years as has been the practice under both the previous SHARE and Arbuthnott formulae

"As a key part of the report's consideration, I am asking the Parliament's Health and Sport Committee for their views on all the recommendations, and will also be engaging closely with all our Health Boards."

The earliest any proposed revisions to the Formula could be implemented is 2009/10.