Health board races to find £17m in savings to secure £108m funding

Alec Doyle, Local Democracy Reporter

A health board is racing to find another £17 million in savings to balance its books and secure a £108 million funding package.

Betsi Cadwaladr University Health Board, which runs NHS services across north Wales, must also stem a monthly overspend of around £2 million to reach break-even.

Meeting its financial target would allow the board to retain £82 million in additional Welsh Government funding and unlock a further £26 million to help cover its contribution to the Welsh Risk Pool.

Failure could see the £82 million withheld, deepening the board’s financial difficulties.

The board’s latest figures show a £29.3 million deficit, putting it £11.4 million behind its financial plan. If the current overspending continues, its deficit could reach or exceed the £43 million forecast for 2026/27.

Departing finance director Russ Caldicott told the board that halting the monthly overspend and meeting its £63 million annual savings target would allow it to break even with the full funding package.

“We’ve been having some robust conversations with our leadership teams and that is starting to give us some real positive outcomes,” Mr Caldicott told the health board meeting.

“We were asked to achieve £46m of savings by month five and we have achieved £47m so we’ve gone beyond that.

“We need to recover the deficit – which stands at £11.4m but by the time recovery measures are in place will be between £13m and £14m.

“If we can find another £17m of opportunity we will hit a break-even position and be able to resubmit our IMTP (Integrated Medium Term Plan).”

Teams within the board have tentatively identified around £9 million in potential savings, although these are awaiting confirmation.

The board funds health services across north Wales, including Wrexham Maelor Hospital, Ysbyty Glan Clwyd and GP and community services.

Independent board member Sir Paul Lambert warned that time was running out to agree where savings would be made.

“The next board meeting is November, which will be halfway through quarter three,” he said.

“A lot of the £2.6billion budget we have to spend is not flexible – in fact between £1.75bn and £2bn is pretty rock solid so we are looking for savings among the very top bit of flexibility.

“Those savings choices need to come to this board at the latest by the next board meeting if not earlier.”

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