Nottingham University Hospitals Trust plan £160 million worth of cuts in bid to plug budget gap

Nottingham’s hospitals are planning cuts of at least £80m for each of the next two years in order to close a budget black hole. Credit: PA Images

The NHS trust which runs the Queen’s Medical Centre and City Hospital has announced it plans to make £160 million worth of cuts over the next two years in hopes of closing a budget gap.

Nottingham University Hospitals Trust spent £71 million more than expected over the last twelve months as a result of rising costs, strikes and growing demand.A new financial plan aims to save £86 million over 2024/25 and a further £80 million over 2025/26, with the aim of breaking even by the end of that financial year.There are few details yet on the cuts, but the Trust says it cannot rule out job losses to reduce its substantial pay bill.Senior managers say any cuts made will not affect patient safety.

Other cost-cutting measures include reducing spending on expensive agency staff, which has grown by 60 per cent since the pandemic, and not always filling positions when staff leave.Nottingham University Hospitals Trust says growing infrastructure costs for old buildings and the end of extra funding during the pandemic, have also put it under pressure.It has a £1.7 billion annual budget – the equivalent of £4.4 million per day – and more than 19,000 staff.Chief Financial Officer Paul Matthew said:

“We are currently facing financial challenges and have produced a comprehensive financial plan to reduce our deficit and achieve a breakeven position by April 2026.“Our financial plan aims to support us in making significant savings over the coming years but will do so in a way that does not compromise patient safety.“We know there is more work to do, especially to reduce our pay bill and we cannot rule out a reduction in posts in the future. We know this will be unsettling and want to make it clear that in these circumstances our priority is to protect jobs and avoid compulsory redundancies.”He told a meeting of the Trust’s board on Thursday (May 9) that the cost-cutting targets were “very ambitious” but he was confident they could be met.Around half of the savings for this financial year have been identified, and work will soon start on those for 2025/26.

Queen’s Medical Centre and City Hospital is run by the Nottingham University Trust Credit: PA Images

Chief Operating Officer Lisa Kelly said: “There is no doubt this is a challenging plan.“Looking ahead to future years so early may be common in business, but as the NHS goes this is a real challenge.”Chair Nick Carver said: “We want to be open to the public about the challenges we’re facing – most of which are shared with the wider NHS.”The savings targets rely on no further strikes over pay by junior doctors, which are hugely costly to hospitals.Sherwood Forest Hospitals NHS Foundation Trust, which runs King's Mill Hospital, also experienced an unexpected £11 million deficit over the last twelve months, driven by similar factors.

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