Responding to the call from NHS Confed chief executive Matthew Taylor at NHS ConfedExpo yesterday, Streeting told the conference today: ‘I just want to say to people – absolutely hear it and get it and I'm sympathetic to the argument.'

Streeting said Labour was ‘still haunted by the spectre of PFI', from the experience of its last period in Government, adding in some cases trusts were ‘still saddled with the costs'.

The secretary of state said there were ‘some good models available', however, citing what has been done by Labour in Wales through mutual investment.

Streeting vowed to look at evidence on the argument being put together by NHS Confed.

‘I just want to reassure people that I am treading cautiously in this area because I always want to learn from what we got right when we were last in Government but also with the humility of the things that we got wrong,' he said.

‘But I recognise that the best way to improve productivity, the best way to improve care in the system is to make sure, as well as the staffing and the day to day running costs, that we are addressing that undercapatilisation in the system so you've got the right facilities, the capacity and the new kit that you need to deliver genuinely high quality and cutting edge care.

‘So we'll work with you on that but I just wanted to give the context for some of my caution, uncharacteristic caution, I might say.'

Matthew Taylor, chief executive of the NHS Confederation, said: ‘Yesterday we highlighted the need for more capital funding, so it is heartening to hear the secretary of state saying he is open to allowing the NHS to work with the private sector to raise vital investment for new facilities.'