In the White Paper, 'The New NHS' (Cm 3807), the competitive nature of the internal market was removed and annual contracts were replaced with long-term service agreements to facilitate best value. Using the findings from earlier research studies, the implications for NHS financial managers are discussed in this article. Financial managers have a major task in maintaining financial stability in the move from one financial regime to another. Improving budget devolution to Primary Care Groups and encouraging good financial planning and control are essential. Financial managers must develop and integrate reliable cost information into the wider performance framework.