Financial pressures for NHS Dumfries and Galloway as cost savings required

Dumfries and Galloway NHS has explained their "very stark financial situation" as a deficit could rise to up to £54million by March 2025.

The health board say, while other boards in the country are facing a similar position, they wanted to explain to the public about the "scale of the challenge."

The financial position in April 2024 is expected to be at a deficit of £35million.

The increased figure of £54million is due to inflation, growing patient need and increasing costs involved in providing treatment and care.

In a statement NHS Dumfries and Galloway said: "NHS Dumfries and Galloway have agreed with Scottish Government that we are required to reduce the deficit to £25 million by the end of March 2025 which equates to achieving savings of £29 million within the coming financial year.

"This will be a very difficult target to meet, representing about 8% per cent of NHS Dumfries and Galloway’s baseline budget.

"Unfortunately, we have no option but to progress towards the achievement of these necessary savings, and it is important that we are open and honest with our population and our staff, and that they understand the scale of this challenge.

"While we will do everything we can to mitigate the impact, we recognise that our services will feel different for our staff, patients and communities.

"It is still too early to be able to describe the detail of how these savings will be achieved. The scale of the savings means that a very large amount of work is required to deliver the agreed target. These savings are likely to impact on our workforce, our infrastructure and our ways of delivering services.

"However, the Board has committed to keep staff, public and partner agencies up to date with the progress towards this savings target, and there will be regular updates to Board throughout the year.

"Organisationally, we will seek to continue our engagement with staff and communities about how we can best deliver services in the face of this unprecedented challenge."

Dr Iain Kennedy, chair of BMA Scotland, said: “This sadly does not come as a huge surprise and follows consistent warnings from Audit Scotland about the financial sustainability of the NHS.

“These funding cuts will be a massive concern for patients and staff in Dumfries & Galloway which like the rest of Scotland is facing into soaring consultant vacancies, increased waiting times with the future for primary care remaining unclear.

"Today’s news confirms fears that the £550m increase specifically for NHS boards outlined in December’s Scottish Government budget would not be sufficient.

"We were aware at the time that the Scottish Government had suggested the consolidated position for all NHS Boards at month six of 2023-24 was a forecast deficit of £395 million.

“It is another reminder why the Scottish Government must urgently progress its commitment to hold a National Conversation to help shape the future of Scotland’s NHS.

"Ministers must ensure it is an open, honest and transparent conversation that includes cross party and public input, as well as the views of the NHS workforce. By doing so – we can finally start establishing what ultimately we are asking of our NHS and whether funding is indeed sufficient.”

Scottish Health Secretary Neil Gray said: “We are providing over £14.2 billion for NHS Boards in 2024-25 to support services, a real terms increase of almost 3%.

"This comes against the backdrop of the UK government’s autumn statement which set out a real terms cut for NHS England for 2024-25, with only £10.8 million of additional consequentials derived from health spending – equivalent to 0.06% of Scotland’s health budget.

“Despite our significant investment, NHS Boards, like other public services, are under unprecedented pressure as a result of UK Government austerity, inflation, Brexit and Covid and we are continuing to work with each Board to recover and reform services and address the financial challenge this year and beyond.”

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