Bleak’ situation across system as finances ‘deteriorate’

NHS commissioners in Shropshire have been told that they are millions of pounds in the red with just weeks to put together an action plan for the government.

A board meeting of the NHS Shropshire Telford & Wrekin Integrated Care Board has been told that the finances are “bleak” as the government looks set to propose a two per cent ‘real terms reduction’ in funding for 2025-26.

They are facing a deadline of the end of February to tell NHS chiefs what they are planning to do about it.

Jo Williams, acting chief executive of Shrewsbury & Telford Hospitals Trust (SaTH) told the meeting in Wellington, Shropshire, on Wednesday that she has written to all staff in a bid to get them onside for a renewed bid to find new ways of working.

She warned that a message of efficiencies “breeds fear” and they have to be “careful with the messages”

“All roles and all staff are valued,” she said. The meeting praised staff for the way they responded to huge winter pressures.

She added: “I have written to all staff, and we have been honest, for a change” about the need to find new ways to work.

They want to make sure all employees are working towards the same goal.

Dave Bennett, who chairs the finance committee of the organisation that brings together hospitals, GPs, community health and social care sectors told the integrated care board that it is on track for a deficit of £20-£30 million at the end of the financial year. It held a meeting on Tuesday to hear an update.

But it would have breached £100million if the organisation had not received recent extra  funding of £89 million from the Government.

Mr Bennett says the local NHS faces a “deteriorating position” in 2025-26 and there is a “degree of nervousness” about the next few weeks as they have to put a plan together for Government.

At another point in the meeting he referred to the situation being ‘bleak’.

He added that it is “extremely challenging” for them to reach break-even over the next two years.

Mr Bennett revealed that they could be looking at having to make nine per cent ‘efficiencies’ every year if they don’t find new ways to work.

He said that they are now “moving into the realm of having to make difficult decisions” and said there is ‘urgency’ in the situation.

Claire Skidmore, Chief Finance Officer, told the meeting that they are now “into the harder decisions’ which could mean “taking money out” of some services and “putting it into something else.”

But Meredith Vivian warned the board that proposed changes to services legally would have to “go through a process of involvement or we will lose all our savings in court proceedings.”

Roger Dunshea, ICB’s acting chair, said there is ‘big concern’ about the financial situation.

“It will require a lot of rigorous thinking right across the system.”

The meeting was told that they will have to look at every aspect of the way the NHS works, including having to ‘justify every post’ and looking at digital transformation, and contracts.

He mentioned that some services could be “decommissioned” as part of the big transformation needed.

Mr Dunshea’s report to the meeting said: “The recent announcements by government on funding indicate a real term reduction of around 2 per cent in 2025-26 and the overall state of the economy is a compounding issue.”

Mr Dunshea also noted that any changes in social care have been delayed until after the next general election.

And he added that the board has a responsibility to develop and implement new way of service provision “without the prospect of new funds.”