News / Break-even funds ‘unsustainable’

Additional funds given in-year to allow four of the seven health boards in Wales to break even is ‘ not sustainable’, according to auditor general for Wales Huw Vaughan Thomas.

In a statement, he said all seven boards had received unqualified audit opinions on their financial statements for 2011/12. But he also issued reports on four boards as they broke even only because they received a total of more than £24m from the Welsh government.

The four boards are Aneurin Bevan (£4.5m), Cardiff and Vale (£12m), Cwm Taf (£4m) and Powys (£3.9m). The reports summarise the financial pressures and additional funding received during 2011/12 by each health board and the consequent financial implications for 2012/13. For example, he said Cardiff and Vale now faces a tougher financial challenge as it will have to repay the £12m over 2012/13 and 2013/14.

Mr Vaughan Thomas said the 2011/12 financial year presented every health board with big financial challenges because of the downward pressure on funding and continuing rise in service demand.

‘The historical pattern of the Welsh government providing health boards with extra funding in year to manage deficits is not sustainable.?That said, there are positive signs the NHS in Wales is prepared to take the tough choices needed to deliver long-term change, although clearly it is a very challenging agenda,’ he added.

He is to publish a report on health finances in Wales soon, detailing the financial position across NHS bodies and the financial challenges they face.