NHS Tayside Given Emergency Loans for Last Three Years

A health board has received emergency cash loans from the Scottish Government for the last three years, the public spending watchdog has revealed.

A new report from Auditor General for Scotland Caroline Gardner showed NHS Tayside had received £14.2 million in additional money - known as brokerage - in 2014/15.

The money, which was paid in two instalments, helped the health board cover expenses including overspends in workforce costs and prescribing.

The board also received brokerage cash in the two previous years, amounting to £2.85 million in 2013/14 and £2.25 million in 2012/13.

Labour's Jenny Marra said the report lays bare the SNP government's failure to resource our hospitals properly in the face of rising costs for staff and prescriptions, increasing patient demand and ever more targets''.

The North East Scotland MSP added: This is the third year in a row that NHS Tayside has had to rely on loans to pay staff and keep the service running. Tayside health board is now set to rack up its biggest deficit yet next year.''

NHS Tayside has reported an overspend of £4.549 million for the first four months of 2015/16, the Auditor General's report revealed, adding this is above the trajectory included in the strategic financial plan and compares with an overspend of £1.95 million for the same period in 2014/15''.

It added the health board would need to make efficiency savings of £27 million in 2015/16 in addition to other spending pressures and its commitment to repay the brokerage cash.

As the board continues to rely on asset sales to address these issues, there is a risk it will not break even in 2015/16,'' the report stated.

Ms Marra said that Health Secretary Shona Robison, MSP for Dundee City East, could not stand aside while frontline services are cut in her own backyard''.

Ms Robison said: Despite Westminster cutting Scotland's budget by 8.6% in real terms since 2010/11, the Scottish Government is investing record levels in the NHS - with the frontline health budget now at over #12 billion for the first time.

We've also ensured that all health boards have received above inflation

increases in their revenue budget this year and I welcome the fact that all

health boards have met their financial targets for the last seven years, including breaking even on both their revenue and capital budgets.''

The Health Secretary added the Government had protected and increased'' the NHS Tayside resource budget by £146.3 million since 2006/7 and said:

This year alone, NHS Tayside's frontline budget has been increased by 2.8% to a total of £663.3 million.

We recognise the issues that the Auditor General raises in her report with regard to NHS Tayside and we will continue to work closely with the board to strengthen their financial position as we move forward.''

NHS Tayside chief executive Lesley McLay insisted the health board has a strong track record in delivering high-quality healthcare within budget over the past 14 years''.

Ms McLay said: Similar to other public sector organisations, we are facing challenges due to increasing demands on our services.

In 2014/15, NHS Tayside achieved a break-even position with the support of

brokerage from Scottish Government. Today's report from the Auditor General sets out the details of this brokerage package, which is predicated upon the future sale of properties which are already declared surplus to requirements.

NHS Tayside recognises the need to repay this brokerage as soon as possible while at the same time achieving the best value from the sale of public assets.

In order to achieve these twin aims, the board is implementing a three-year

property strategy with a focus on accelerating sales of properties which are no longer clinically required. Progress against this strategy is being monitored regularly by the board.''

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