GPs given control of NHS millions have ties to companies bidding for contracts Some GPs already 'awarded themselves' six-figure contracts Clinical Commissioning Groups responsible for two-thirds of NHS budget Labour said reforms create "colossal conflict of interest at NHS heart By Fiona Macrae Science Correspondent Many of the GPs handed control over NHS budgets from today have financial interests in private health companies. Some have already "awarded themselves" contracts worth tens of thousands of pounds. Lay members of the newly-formed Clinical Commissioning Groups, including Arthur Scargill's son-in-law, could also profit. Many GPs who have been given control of NHS budgets have financial interests in private health companies (file picture) In one of the biggest ever NHS shake-ups, these groups have been given responsibility for more than two-thirds of the health service's annual budget. Every GP's practice is affiliated to one of 211 commissioning groups, whose boards of GPs, nurses, hospital doctors and lay members will decide how to spend the local health budget. The reforms are intended to cut bureaucracy, reduce costs and foster competition, encouraging private firms and charities to take on health service contracts. The CCGs stress board members do not take part in decisions about their companies but fears over conflicts of interest remain. Labour warns giving family doctors control of local budgets has created a "colossal conflict of interest at the heart of the NHS." Examples of potential conflicts include NHS Bury's CCG in Greater Manchester, where chairman Dr Kiran Patel is founder of a weight management company and a shareholder in a cosmetic laser treatment firm. Shadow health secretary Andy Burnham said there is a risk public trust in the NHS will be 'lost' Bury CCG awarded a contract of around £130,000 to his company, ABL Health. Dr Patel told the Sunday Times that an independent audit committee will ensure all contracts are fairly awarded. He added that he is reducing his involvement with ABL Health and had not taken part in discussions around the contract. The boards also have lay members. For instance, Jim Logan, son-in-law of militant miners" leader Arthur Scargill, is on the board of NHS Barnsley CCG. Mr Logan, a mining engineer turned NHS business manager, is the founder of Pain Management Solutions, a "national service providing pain management services in the community on behalf of the NHS." As a member of the CCG, he will help to distribute the £350million local health budget and award contacts to healthcare firms. Recent research by the British Medical Journal found more than a third of GPs on the boards of CCGs have financial links to firms which could profit from the shake-up. Andy Burnham, the shadow health secretary, said: "There is now a real risk that the doctor-patient relationship will be corroded and public trust in the NHS lost. Those entrusted with the NHS budget must be seen to have its best interests at heart. The public will be appalled at any suggestion senior figures might gain personally. The Department of Health said CCGs must protect against conflicts of interest by law and detailed guidelines are being prepared.