NHS Highland Latest Report Show Despite Scottish Government Help Cuts Are Likely

27th March 2024

The NHS Highland board meeting today (26 March 2024) saw the latest financial position and similar to Highland council it makes grim reading. Despite efforts the deficits remain as can be seen by all the red numbers in the report.

NHS Highland submitted a financial plan to Scottish Government for the 2023/2024 financial year in March 2023. An initial budget gap of £98.172m was presented with a Cost Improvement Programme of £29.500m proposed, leaving a residual gap of £68.672m.

Scottish Government provided additional funding and the Board is now
looking to deliver a financial deficit of no more than £55.800m - further additional funding has now been made available to improve this position and this is reflected in the improved position reported.
This report summarises the position at Month 10, provides a forecast through to the end of the financial year and highlights the current and ongoing service pressures.

For 2024/2025 the draft opening position for NHS Highland is a deficit position of £112.491m. The maximum brokerage that NHS Highland can request for the year 2024/2025 has been capped at £28.4m, leaving a financial gap of £84.091m.

Scottish Government has requested a financial plan that highlights the actions that would need to be taken to deliver the £84.091m of Cost Improvements and reductions.

Information has been provided as to the breakdown of this target and the methodology proposed to address the financial challenge.
The opening financial gap includes and assessment of the Adult Social Care position which is estimated to be £16.252m relating to forecast costs increases, pay awards and demand increase.

There is a potential that this will increase to £23.252m to reflect the
proposed reduction of £7.000m agreed by Highland Council through the budget setting process. The proposed reduction has not been formally agreed but is included within the plan figures for prudence.

Read the report HERE

All the papers for the meeting can be seen at -
https://www.nhshighland.scot.nhs.uk/about/board-and-committee-meetings/board-meetings/board-meetings-in-2024/26-march-2024/