06/01/2005

NHS forced to make cuts on £500m budget deficit

The NHS is being forced to close wards, make redundancies and reduce the number of beds, as it struggles with a £500 million budget deficit.

In spite of these cost cutting measures, the Health Service Journal (HSJ) claims that, according to a survey of health authority financial directors, the NHS will be £225 million in debt by the end of the financial year. The journal also reports that half of the strategic health authorities questioned claimed they would be in debt by the end of March. This was attributed to a variety of causes, including new doctor contracts and waiting lists.

The journal reported that widespread cuts were being made across the UK, as hospitals try desperately attempted to save money.

Southampton University Hospital has already lost 120 beds, made 100 redundancies and closed two nurse-led units, in a bid to save up to £15 million, while Bradford Teaching Hospitals NHS Foundation Trusts are due to close five wards and four operating theatres.

The HSJ reported that the average deficit is £18 million, although many are far in excess of that figure, including one in south west London, where the overspend stood at £69.2 million and another in West Yorkshire, where it was £40 million.

The Department of Health remains confident that the deficit is not a major problem, a spokesperson maintained that the NHS was expected to achieve "financial balance" in the fiscal year 2004-2005.

However, Liberal Democrat Shadow Health Secretary, Paul Burstow, blamed the government for the funding problems: "The financial pressures on the NHS are a direct result of this Government's obsession with setting targets that distort local priorities."

"It's time Ministers opened the books so all can see just how serious the financial problems really are. It simply is not good enough for Ministers to hide behind unelected and unaccountable NHS managers, leaving them to make the cuts," he said.

(KMcA/SP)

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