• Final 2015/16 provider deficit likely to exceed the £2.3 billion estimated by The Kings Fund
• NHS national bodies impose stringent financial controls in effort to reduce the deficit to £1.8 billion by the end of the financial year
• More than two thirds of trusts and 9 out of 10 acute hospitals are forecasting a deficit at the end of 2015/16

 
According to the latest quarterly monitoring report from The King’s Fund, NHS trusts are forecasting an end-of-year net deficit of around £2.3 billion. The regular survey of NHS finance directors carried out for the report also highlights increasing concerns about quality of care as the financial crisis deepens.

If we are to get out of this negative sequence of increasing deficits, the centre and the sector must work in strong collaboration

Siva Anandaciva, head of analysis, NHS Providers, said:

“The King’s Fund findings once again show the precarious position of NHS finances; with the majority of NHS providers expecting to be in deficit by the end of 2015/16, the challenges of increasing demands upon frontline services should not be underestimated. 

“The focus of our members during these challenging times remains on seeking long term financial and clinical sustainability. However, despite these best efforts it is still possible that the final 2015/16 provider deficit will exceed the £2.3 billion estimated by the Kings Fund and providers enter 2016/17 with a substantial recurring deficit. It is welcome that we are finally moving away from financial policies based on punitive contract fines and marginal payment rates to a more credible system of tariffs that reflect increased costs, and greater support to control the costs of temporary staff. But these policies will take time to make an impact and in the interim the demand for services continues to escalate.”

Read the full press statement