NHS Trust debt must be tackled - Webb

12.00.00am GMT Sat 4th Mar 2006

Liberal Democrat Conference today debated the growing problem of NHS Trust Deficits and passed a motion calling for urgent government action to address the consequences. The NHS's own mid year forecast was for a £623m deficit by the end of the year. Other commentators think the deficit could be as high as £1.2bn.

The huge level of debt is likely to lead to cuts and even closures in Community Hospitals, which are vital to providing local services to patients. The elderly and vulnerable will be particularly hard hit by the closure of their local hospitals.

This debt is only likely to get worse as trusts are forced to follow the inappropriate targets set centrally by the Department of Health. These artificial targets have distorted spending priorities and undermined local democratic accountability in the NHS.

Commenting on the motion, Liberal Democrat Shadow Health Secretary, Steve Webb MP said "Constant revolution in the NHS is creating serious financial instability for Trusts. Ministers are making it impossible for Trusts to plan ahead because of their endless reforms.

"The Government is trying to sort out long term financial imbalances at breakneck speed, with devastating consequences for local services.

"This is not a rational way to proceed. What is needed is a managed transition to more efficient ways of working, not helter-skelter reform designed to deliver a legacy for the Prime Minister before he retires."