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Bolton NHS Foundation Trust could run out of cash within the next few months and will require revenue support of around £16m, a new report has revealed. The NHS financial report for the end of the upcoming 2025/26 period, presented at the trust’s board of directors meeting last month, outlined that based on current run rates, the trust needed to apply for revenue cash support by early March. The report warns that the trust "would run out of money in the first quarter of the 2025/26 financial year", which runs from April to the end of June, and will "require revenue cash support of circa £16m" to amend this.
Initial plans had outlined a three per cent cost improvement programme (CIP) target, which had left the organisation facing a £32m shortfall. But this has since been reduced to a £29m gap through income assumptions. The report states: "Interest received has been higher than planned.
"It is anticipated that interest will reduce throughout the year as cash balances reduce. "The trust cash balance was on plan at month 10 [of the last financial year]. The trust will likely be overdrawn by month 11 and finish the year £4.
9m overdrawn." Speaking to The Bolton News, council leader Cllr Nick Peel said : “It is obviously imperative for the trust to sort out its finances, although this is not a council financial issue. “They must bear tough decisions following 15 years of austerity which starved the NHS of their resources, whilst the demand for services has also increased.
READ MORE: Royal Bolton Hospital medic punched in face by patient Former Bolton A&E nurse to retire from NHS after 35 years Royal Bolton Hospital A&E to undergo transformation “The government is investing in social care, as seen in Wes Streeting’s review to transform social care to help people live independently in their own homes and improving the quality of care. “If people can be looked after in their own homes, this puts an end to bed blocking and will reduce waiting lists. "More investment in social care is vital to save the NHS and I’m extremely pleased to see the government taking positive action to make sure this is possible.
” The balance of overspends is a combination of pay awards, additional expenditure driving the elective income over performance, and unidentified CIP, the report said. The trust is incurring additional costs with various insourcing/outsourcing providers which has supported additional elective income. However, all providers in Greater Manchester have since been issued with a control total and can report a maximum deficit of £200m.
The trust board noted that the next two years are expected to be “very difficult”, as discussions were held on how best to plug the gap. The board had previously agreed that a three per cent CIP target should be “doable, although challenging”, and a £6m contingency has been included. The council’s opposition leader, Cllr Martyn Cox , said: “The seriousness of the issue is recognised, and I fully support the urgent call for action.
“It is essential that the Greater Manchester Integrated Care Board and the government address this gap and provide funding certainty without delay. The report detailed that the target would create a “high risk and a great deal of uncertainty” over whether the NHS could successfully achieve the performance requirements. (Image: Martini Archive) “The health and well-being of our town must take precedence.
“Our community deserves timely, effective support and we urge decision-makers to prioritise the needs of our residents above all else.” It is anticipated that Greater Manchester will be challenging the NHS to deliver a five per cent CIP to meet national saving targets. This would lead to a forecast deficit of £13.
1m. If the trust has to achieve a control total of £6.5m further measures would be required.
The report detailed that the target would create a “high risk and a great deal of uncertainty” over whether the NHS could successfully achieve the performance requirements. Bolton South East MP Yasmin Qureshi said: “I’ve written to the Secretary of State for Health and Social Care to request support for Bolton NHS Foundation Trust after being advised of the budget gap they are experiencing. “I am concerned about the circumstances that have led to this budget gap, and I am meeting with the chief executive in the coming days to discuss this and ensure that no patients are adversely impacted by the cost-cutting measures needed to ensure financial stability.
” In response, Kathy Roe, chief finance officer at NHS Greater Manchester, said: “NHS services are facing ongoing financial pressures alongside rising demand. "We are committed to ensuring every pound is spent wisely to support the best possible care for patients, within the resources available to us. “We’re working closely with our local hospitals and partners across the wider health and care system to address these challenges and continue meeting the needs of our communities.
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