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The National Tariff cannot be introduced in its current form at this stage and its implementation will be delayed.

The analysis shows that around 13% of clinical commissioning groups (CCGs), 37% of relevant providers by number, and 75% of relevant providers by share of supply, objected to the proposed method for determining national prices for NHS services.

Under the legislation governing the NHS payment system, the proposals cannot be introduced if the proportion of CCGs, or the proportion of relevant providers (by number or weighted by share of supply), who object to the method equals or exceeds 51%, unless there is a reference to the Competition and Markets Authority.

As the share of total tariff income received by the objecting providers exceeds 51%, the National Tariff cannot be introduced in its current form at this stage and its implementation will be delayed.

Next steps

Monitor and NHS England are now considering the feedback received from the consultation and possible next steps, in the context of what the legislation permits in the event that an objection threshold is breached.

Amongst the options available are engaging with the sector then re-consulting on revised proposals or referring the method to the Competition and Markets Authority.

Meanwhile, commissioners and providers will be expected to continue planning for 2015/16 on the basis of the timetable and guidance that has already been issued.