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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. |
There are more NHS organisations, saddled with worse deficits, than there were last year Andrew LansleyShadow Health Secretary Viewpoints on NHS finances Cambridge struggles with debt | There are more NHS organisations, saddled with worse deficits, than there were last year Andrew LansleyShadow Health Secretary Viewpoints on NHS finances Cambridge struggles with debt |
Three-quarter year forecasts show that the health service will finish £13m in surplus. | 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. | 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 £5.4bn to £75bn in 2006-07. | |
But nearly £2bn of this has not been passed on to trusts as expected. | |
Some £698m was used to pay off deficits from previous years. | |
Regional health bosses have also top-sliced £1.1bn of the extra money PCTs were expecting in a bid to off-set the deficits. | |
Added to this is the £450m 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 £547m deficit in 2005-06. | |
Andrew Lansley, Shadow Health Secretary, said: "Labour are able to claim that the NHS will finish this year in surplus, but the surplus they have generated is a sham. | Andrew Lansley, Shadow Health Secretary, said: "Labour are able to claim that the NHS will finish this year in surplus, but the surplus they have generated is a sham. |
"There are more NHS organisations, saddled with worse deficits, than there were last year. | "There are more NHS organisations, saddled with worse deficits, than there were last year. |
"Patricia Hewitt's skin is being saved only by savage cuts to centrally-held budgets, which will all need to be restored in the years to come." | "Patricia Hewitt's skin is being saved only by savage cuts to centrally-held budgets, which will all need to be restored in the years to come." |
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." |