NHS tries to save £60m

NHS managers in the South-East have been ordered to save £60 million by the end of March, leading to fears of cuts in patient services.

A leaked letter from Ruth Carnell, chief executive of the service for the region, says the aim is to compensate for a predicted overspend of that amount. Many large London hospital trusts are also facing deficits of millions of pounds as the 1 April deadline for balancing their books approaches.

Shadow health secretary Dr Liam Fox said the cuts would inevitably mean services suffering. However, Health Secretary Alan Milburn said the sum involved was only one per cent of the South-East region's annual spending on health, and there was enough "slack" available to cover the shortfall without affecting patient care.

Ms Carnell's letter went to all hospital trusts in the area, asking how they could make savings. A copy was obtained by BBC Radio 4's Today programme. The letter stated: "I cannot overemphasise the seriousness of our financial position and the impact it has on a national level."

Ms Carnell ruled out moves which would prevent the region - from Northamptonshire to Kent, but excluding London - meeting the Government's targets on heart disease, cancer and waiting lists. "I recognise that this will mean reductions in areas that do not contribute to national imperatives. Outside the list, no option should be discounted."

Mr Milburn said the problem should be seen in the context of an NHS which spends £1billion every week nationally. He told the BBC: "It is worth remembering that the NHS in the South-East has an annual budget of £6billion.

"There will not be an adverse impact on patient care because the South-East region will get loans from other parts of the NHS precisely to deal with this."