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| Version 1 | Version 2 |
|---|---|
| Many NHS trusts face growing debt | Many NHS trusts face growing debt |
| (10 minutes later) | |
| NHS trusts in England are creeping deeper into debt, forecasts show. | NHS trusts in England are creeping deeper into debt, forecasts show. |
| Over one in three hospitals and primary care trusts, which pay for local services, are not expecting to balance their books this financial year. | Over one in three hospitals and primary care trusts, which pay for local services, are not expecting to balance their books this financial year. |
| But NHS bosses said overall the health service will break even - as promised by Health Secretary Patricia Hewitt. | But NHS bosses said overall the health service will break even - as promised by Health Secretary Patricia Hewitt. |
| Health chiefs have built a contingency fund by making savings from training and public health budgets, and holding back money due to the NHS this year. | Health chiefs have built a contingency fund by making savings from training and public health budgets, and holding back money due to the NHS this year. |
| We have to ensure that those organistions in difficulties are being turned around, because otherwise we're just storing up problems for next year or the year after that Andrew LansleyShadow Health Secretary Viewpoints on NHS finances | We have to ensure that those organistions in difficulties are being turned around, because otherwise we're just storing up problems for next year or the year after that Andrew LansleyShadow Health Secretary Viewpoints on NHS finances |
| Three-quarter year forecasts show that the health service will finish £13m in surplus. | |
| But this masks the increasing deficits hospitals and PCTs are predicting - up from £1.2bn three months ago to £1.3bn. | |
| Financial balance can only be achieved by taking money from elsewhere and using the small surpluses some trusts are running up. | Financial balance can only be achieved by taking money from elsewhere and using the small surpluses some trusts are running up. |
| The NHS budget grew by £5.4 billion to £75 billion in 2006-07. | The NHS budget grew by £5.4 billion to £75 billion in 2006-07. |
| But nearly £2 billion of this has not been passed on to trusts as expected. | But nearly £2 billion of this has not been passed on to trusts as expected. |
| Some £698 million was used to pay off deficits from previous years. | Some £698 million was used to pay off deficits from previous years. |
| Regional health bosses have also top-sliced £1.1 billion of the extra money PCTs were expecting in a bid to off-set the deficits. | Regional health bosses have also top-sliced £1.1 billion of the extra money PCTs were expecting in a bid to off-set the deficits. |
| Added to this is the £450 million contingency fund and nearly £200m in surpluses some trusts are amassing. | |
| Pledge | Pledge |
| David Nicholson, NHS chief executive, insisted the financial situation was improving - but admitted significant numbers of trusts were facing problems. | David Nicholson, NHS chief executive, insisted the financial situation was improving - but admitted significant numbers of trusts were facing problems. |
| He said: "These numbers represent the NHS doing what it said it would do - we will get in balance overall." | He said: "These numbers represent the NHS doing what it said it would do - we will get in balance overall." |
| At the end of last year Health Secretary Patricia Hewitt promised the health service would break even in 2006-07 after posting a £547 million deficit in 2005-06. | At the end of last year Health Secretary Patricia Hewitt promised the health service would break even in 2006-07 after posting a £547 million deficit in 2005-06. |
| Andrew Lansley, Shadow Health Secretary, said: "The government has held back what was intended to be growth money for the NHS of around £100 million and training budgets have been cut by about £350-400 million. | Andrew Lansley, Shadow Health Secretary, said: "The government has held back what was intended to be growth money for the NHS of around £100 million and training budgets have been cut by about £350-400 million. |
| "But we have deficits in trusts across the country. It will probably be about the same situation as last year, with a deficit of around £1.3 billion." | "But we have deficits in trusts across the country. It will probably be about the same situation as last year, with a deficit of around £1.3 billion." |
| However, Mr Lansley said using money from other parts of the NHS did not address the financial problems being seen in hospitals and primary care trusts. | However, Mr Lansley said using money from other parts of the NHS did not address the financial problems being seen in hospitals and primary care trusts. |
| "We have to ensure that those organistions in difficulties are being turned around, because otherwise we're just storing up problems for next year or the year after that." | "We have to ensure that those organistions in difficulties are being turned around, because otherwise we're just storing up problems for next year or the year after that." |
| Norman Lamb, for the Liberal Democrats, said a lot trusts were being forced to take very tough measures to get their finances back on track. | Norman Lamb, for the Liberal Democrats, said a lot trusts were being forced to take very tough measures to get their finances back on track. |
| "The impact on patient care around the country could be very damaging." | "The impact on patient care around the country could be very damaging." |