ICS budget deficits expected to reach £6bn
15 March 2023
A recent report in the HSJ has revealed that the draft financial plans submitted by ICSs for the upcoming financial year show an expected budget deficit of around £6bn.
This figure is likely to be reduced as plans are scrutinised by NHS England, but the initial number is thought to be considerably higher than those in earlier, draft plans.
According to the HSJ, in the Midlands region, plans show a potential deficit of £1.5bn, whilst initial deficit figures for the Northwest total approximately £1.4bn. When comparing these figures to run-rate positions in the current financial year, and extrapolating nationally, it is suggested that nationally, an indicated overall deficit of around £6bn.
The withdrawal of Covid funding for the upcoming financial year, along with rising costs across the economy, are likely to be factors in the increase of shortfalls.
Liaison Group CEO, Andy Armitage, says: “Many of those in financial positions across the country are telling Liaison that the economic landscape is more challenging now than ever before. The challenge to balance the books whilst also providing essential, high-quality care to patients is becoming increasingly difficult, and so we’re keen to deliver support where we can with solutions which release cash and time savings quickly, for reinvestment where it is most needed, including into frontline services.”
For a conversation about how Liaison Group can help to reduce your organisation or system’s budget deficit ahead of the new financial year, please get in touch below.
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