News / NHS stays on course for planned surplus

21 December 2009

The NHS in England is in line to produce a £1.5bn surplus in 2009/10, despite a small increase in the number of trusts and primary care trusts forecasting a deficit at the end of the year.

In the latest issue of The Quarter, which covers the first six months of the financial year, the Department of Health said 11 PCTs and trusts were forecasting an operating deficit of £107m. At quarter one, nine organisations were predicting an operating deficit totalling £85m.

The number of organisations predicting a technical deficit also grew. At the end of the first quarter, 26 trusts forecast technical deficits totalling £275m but this had increased to 75 organisations with a total technical deficit of £944m. Technical deficits are due to impairments to fixed assets or the revenue cost of bringing private finance initiative schemes on-balance sheet.

The Quarter also revealed that fewer trusts were ‘performing’ under the Department’s performance framework – 52 are now judged to be ‘performing’, down from 58 at quarter one.

However, David Flory, the Department’s director general of NHS finance, performance and operations, was upbeat.

‘A strong financial position, backed by good progress on delivery, will continue to ensure high-quality services for patients, despite the current economic climate,’ he added.

SCOTLAND FACES SIGNIFICANT PRESSURES

NHS Scotland’s financial performance was good in 2008/09 but it faces significant financial pressures ahead, according to a report by Audit Scotland. Overview of the NHS in Scotland’s performance in 2008/09 added there were deep-seated health problems, such as drug and alcohol misuse, that could not be dealt with by the health service alone.

In 2008/09 the service had a £4m underspend but it faced a number of cost pressures. In the current financial climate, the auditors said it needed to focus on efficiency and productivity while continuing to provide safe and quality services for patients. To help achieve this, it needs better information on quality, costs and activity.

Health secretary Nicola Sturgeon hailed the service’s performance but added that it would not be resting on its laurels.

‘Not only will we continue to strive for further improvement in all of these key areas, but the Scottish government is also putting great emphasis on tackling preventable disease linked to lifestyle choices, such as alcohol, tobacco, diet and exercise,’ she said.

Related content