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Board chief warns extra funds won’t balance budget |
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Woodend hospital from Craigden, Aberdeen © Collpicto
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Pay rises and pensions will consume most of the extra money coming NHS Scotland’s way next year according to a health board’s chief who has warned his organisation will still face a deficit of more than £100m in 2025/26.
NHS Grampian interim chief executive Adam Coldwells told board members today that a 3% budget uplift in 2025/26 is welcome but will do little to bring the board out of the red.
He said NHS staff pay awards, increased pension costs and other Agenda for Change reforms will mean little of the £2.1bn extra earmarked for Scotland’s health boards next year will be left over to improve services.
It comes just weeks after NHS Grampian declared a ‘critical incident’ at its Aberdeen Royal Infirmary, after sustained high demand for care.
Dr Coldwells said it is important the public has a realistic view of what next year’s Scottish budget commitments mean for local health services:
“I think that sense that suddenly, locally, we’re going to have a ton of money to spend isn’t the case for changing what we need to do around the items we’ve had before around reform, change, sustainable provision.
“So I think that’s a really key message for us to work through and see how we have the narrative, with the population, the public, as we do the reform agenda and, again, work towards that sustainable financial position in the future.”
NHS Grampian is predicting to overspend by £73.1m this year – its largest ever deficit.
As a result, it is unlikely to have any reserve cash left to support its financial position in 2025/26.
The board expects to face a deficit of more than £100m in the next financial year, requiring savings far in excess of the 3% it would normally be required to identify to move towards financial sustainability.
NHS Grampian’s Director of Communications told the board meeting that efforts are underway nationally to “bridge that disconnect” between the messages “there’s lots of new money and health is protected” and “the reality on the ground”.
Read more: Health and care in the Scottish budget; Major shake-up in NHS service planning; Health boards given deadline to cut agency nurses
Tags: Finances; Senior Leadership. |
