Budget picture still bleak warn NHS financial chiefs

Deficit down but Ayrshire & Arran say outlook remains difficult

- KEVIN DYSON

In the hole NHS chiefs have confessed their budget picture is a long way from improving.

NHS Ayrshire & Arran has reduced its projected year-end deficit to £25 million, but board members have been warned the improvement is largely due to one-off measures rather than a sustained financial recovery.

A financial update to the board showed the forecast deficit has fallen by £4.7 million in the past month, down from £29.7 million, and significantly lower than projections of more than £40 million earlier in the year.

However, officials stressed that the improvement does not reflect a change in the board’s underlying financial position.

The report states that the reduction is mainly due to improved Scottish Government funding and nonrecurring savings, meaning the core deficit remains unchanged.

Despite the improved headline position, the board remains significantly overspent, with a £24.9 million overspend after 11 months of the financial year.