NHS predicts 1.75bn pound surplus

The Department of Health has said the NHS has started the current financial year in a good position, with the health service predicting a surplus of 1.75 billion pounds for 2008-9.

It claims the health service is continuing to show robust financial management and is making strong progress against key priorities.

The first quarterly financial report for the health service forecasts the end-of-year position based on the April-June period and has predicted a surplus of two per cent of the overall NHS budget.

Surplus funds will remain within the health service and be used to enhance patient care.

The gross deficit at the end of the current financial year is forecast to be 45 million pounds, down from 125 million at the end of last year and 1,312 million from 2005-6.

David Flory, the director-general of NHS finance from the Department of Health, said: “This is an excellent start to the year for the NHS. A strong financial position backed by good progress on delivery will continue to ensure high quality services for patients.”

He added the health service is also on track to deliver its target of 18 weeks from referral to treatment, while also making progress on its MRSA goal.

In June 2008, the Department of Health reported an NHS surplus of 1,658 million for the 2007-8 financial year.