‘Difficult choices’ for heath board looming
£58m of savings required to bridge huge financial gap
NHS Tayside will start the new financial year faced with having to make at least £58 million of savings.
The health board’s assistant director of finance has said Tayside has “difficult choices” ahead as it seeks to plug a mammoth financial gap.
A draft version of NHS Tayside’s 2024/25 financial plan went before the board on February 29 with the final version submitted to the Scottish Government by the deadline this week on March 11.
A financial report by the health board’s assistant director of finance Karen Mckay outlined the situation facing NHS Tayside.
In December 2023 the Scottish Government capped NHS Tayside’s brokerage for 2024/25 at £25m.
In her report Ms Mckay said: “This was the maximum financial deficit that SG [the Scottish Government] will accept from the financial plan in year one. Year two and year three must demonstrate break-even.”
NHS Tayside has an opening financial gap of £83m in 2024/25.
Due to the brokerage limit of £25 million, the health board will be left with making £58m of savings over the course of next year.
Ms Mckay said: “The recurring deficit of £65.2m, plus ongoing additional non-recurring pressures and anticipated growth in 2024/25, results in an opening financial gap of £83m.
“Against an original brokerage limit of £25m, the minimum savings required in 2024/25 is £58m.”
NHS Tayside will receive £7.8 million from the New Medicines Fund which will be used to reduce the original brokerage cap of £25m to £17.2m.
Ms Mckay explained: “The additional New Medicines Fund support since notified to the board does not change the £58m savings requirement, it simply reduces the available brokerage cap.”
She added: “The range of financial recovery actions required to deliver a gap of this scale will require the board to consider difficult choices going forward.”
Members were assured the board is “fully engaged in local, regional, and national discussions to understand where opportunities exist in the short to medium term to maintain services”.
Her report stated: “The executive leadership team has commissioned an Annual Delivery Plan Short Life Working Group to ensure that NHS Tayside has a co-ordinated set of plans, which align financial plans, performance delivery plans, and workforce plans.”
The financial report outlines how a revised workstream programme has been developed to deliver sustainable health and care services. The health board will be “making best use of available resource to support quality and patient care”.
However “the ability to recruit and retain staff will impact on efficient use of resource”.
Last month it was revealed the Scottish Government had paused all key capital NHS projects for at least two years.
This includes the state-of-theart £128 million treatment centre at Perth Royal Infirmary (PRI).
The range of financial recovery options required to deliver a gap of this scale will require difficult choices