Payments of £33m government crisis loan are suspended

NHS Tayside’s £33 million crisis loan debt to the Scottish Government has been “suspended”.

In a letter to Holyrood’s Public Audit Committee, Paul Gray, the director general for health and social care, said the brokerage would be taken off the table for the time being after a bombshell report declared there was little chance of it being paid back without compromising performance.

He wrote: “I will return to this issue once NHS Tayside’s transformation plans are further developed.”

A report by the team sent to assess the beleaguered health board said the Scottish Government “should consider the potential impact on NHS Tayside of being required to repay the £33.2m of accumulated financial support which is still outstanding and note the potential need to provide further financial support in future years.”

The Scottish Government has provided financial support totalling £37.5m to NHS Tayside over the last five years. Just £4.3m has been repaid.

Jackie Baillie, acting convener of the Public Audit Committee, said: “Our Committee previously heard from NHS Tayside bosses on the major financial challenges they faced.

“Underpinning all of these discussions was our strong belief that patients and staff members should not suffer as a result of NHS Tayside’s financial problems.

“We hope the Scottish Government’s plans to ‘suspend’ the requirement for NHS Tayside to repay loans of £33m will give the health board the chance to get back on to a sustainable financial footing and protect vital patient services in Tayside in the future.”

Paul Gray, director general for health and social care.