As discussed in the quarter 2 edition of the departmental publication, The Quarter, there are 11 national health service organisations forecasting that they will end the 2008-09 financial year with an operating deficit.
In addition to these eleven organisations, there are six organisations forecasting a technical deficit for the 2008-09 financial year. Five of these organisations have a technical deficit relating to the impairment of assets, which does not form part of their operating position (one of these organisations is also in the list of 11 organisations with an operating deficit). The remaining technical deficit is a phasing issue for a part year foundation trust, relating to the period that it was an NHS trust.
All NHS organisations are currently working to finalise their financial plans for 2009-10. We would expect these financial plans to be in line with the local direction and priorities agreed with their strategic health authorities, and the priorities set out in the Operating Framework for 2009-10.
A copy of the quarter 2 edition of The Quarter has been placed in the Library and can be found at the following website: