The NHS is set to lose £94 million by the end of the financial year,

NHS to lose £94m

NHS to lose £94m

The NHS is set to lose £94 million by the end of the financial year, the Department of Health (DoH) has predicted.

Just three months ago DoH figures predicted the health service would have an £18 million surplus by the end of the 2006-07 financial year.

And the news that the health service has slipped into deficit again has been labelled a “worrying sign” for the future of the NHS.

“It is difficult to see how the situation can get better if the damaging deficits are getting worse,” said Liberal Democrat health spokesman Steve Webb.

“Government promises that the NHS will break even by the end of the year have proven to be a pipe-dream rather than an honest assessment of the state of our health service.”

Shadow health minister Stephen O’Brien added: “Labour’s mismanagement has put our NHS in this financial mess.

“Now we see that, despite all their warm words and promises, not to mention extra millions spent on turnaround consultants, Labour are failing to solve the NHS cash crisis.”

However, the DoH said it was confident the deficit could be brought under control.

NHS chief executive David Nicholson said: “NHS organisations are doing all that they can to meet their statutory duties to balance whilst continuing to provide improved services for patients.

“Despite these financial challenges, the NHS continues to treat more people than ever before with shorter waits, particularly in areas such as cancer and A&E.

“For those organisations where insufficient improvement has been made, action plans have been agreed with Strategic Health Authorities to ensure that financial performance is improved in line with local plans.”

He added: “I expect the NHS to deliver net financial balance as planned by the end of this financial year, and this will provide a sound footing for continually improving services for patients in the years to come.”