NHS hospitals to end the year with a deficit

NHS trusts are going to end the financial year in debt for the first time in eight years.

This is according to official figures, drawn up by the NHS Trust Development Authority (TDA), an arm of the Department of Health, which show 26 loss-making trusts are reporting a combined deficit of 456.8 million pounds.

The trust with the largest individual deficit – 39 million pounds – is the University Hospitals of Leicester, but after all trusts' figures are taken into account, NHS hospitals will end the financial year 112 million pounds in the red.

However, a Department of Health spokeswoman insisted the NHS as an entity will actually finish the year in the black.

She said: "We are insisting on compassionate care, and trusts are expanding nursing numbers to ensure safe staffing levels, which has inevitably put pressure on finances in the short term."

The spokeswoman added the Department of Health is now formulating recovery plans for any trusts in financial difficulty.