MPs have urged the NHS Executive to look again at arrangements that allow former GP fundholders to spend savings from the scheme on their own priorities.

The Commons public accounts committee says, in its annual report on the NHS's accounts, that action is needed to ensure these substantial funds are spent on projects that max - imise benefits to patient care.

In evidence, the PAC heard that£191m of savings had been accumulated by fundholders, who can spend up to£25,000 a year for four years on their own projects.

But the report does not put forward any reasons why the arrangement should be re-examined. NHS finance director Colin Reeves told MP's the anecdotal evidence was that former fundholders were working closely with colleagues.

PAC member Richard Page told HSJ the MP's felt it might be better if the savings were available in a central pot. If an area is in surplus, which is a rare and marvellous event, it should be reallocated.

National Association of Primary Care chief executive Clive Parr said: 'We would totally oppose that. To go back would be very detrimental.'