NHS overspends by £770m as it misses deficit target

NHS HOSPITAL and ambulance trusts overspent by £770million in the last financial year, leaked figures reveal – far beyond targets they had been set by regulators.

Last week health ministers were accused of suppressing the state of NHS finances in the run-up to the election, when publication of official statistics was delayed.

Analysis by the Health Service Journal suggests the deficit for 2016-17 will amount to £770 million, beyond the £580million limit set by regulators but far below the £2.45billion reached the previous year. However, the reduction is in part a result of a £1.8billion injection of emergency funding, without which the deficit would have increased to over £2.5billion.

NHS finance experts told the Guardian the latest figure had been “flattered” by the £1.8 billion bail-out funding. Chris Hopson, chief executive of NHS Improvement, said research by his organisation indicated the deficit figure would be in the region of £700million to £750million. He said the bail-out money had “clearly been very helpful”.

The Government had come under pressure after publication of the level of hospital deficits was delayed until after the election because of purdah rules, which restrict civil service announcements while the campaign is ongoing.

The regulator NHS Improvement said last week that it was “disappointing” the figures would not be published sooner. They had been expected to be released by the end of the month.

Jonathan Ashworth, the shadow health secretary, said: “These leaked figures confirm that NHS finances under the Tories are now at their weakest and most unstable. Hospitals remain millions of pounds in deficit and the result is services cut back, treatments delayed and staff laid off.”