A dramatic surge in staff pay costs has plunged hospitals in Birmingham and Solihull into a significant financial deficit, with bosses describing the situation as 'disappointing'.
Soaring Deficit Figures Revealed
Official figures presented to the University Hospitals Birmingham (UHB) NHS Foundation Trust board reveal a year-to-date deficit of £31.2 million as of the end of October. This financial black hole is £17.1 million worse than the £14.1 million deficit the trust had originally budgeted for at this stage of the financial year.
The news is a sharp reversal of fortune after the trust recorded a small surplus in September. Julian Miller, UHB's chief financial officer, stated, "It's fair to say month seven was disappointing for the trust from a financial perspective following a more positive position in month six. At this stage of the year, you can't really afford to have many more disappointing months."
Pay Pressures the Primary Cause
The primary driver for October's poor financial performance was a substantial overspend on pay. The trust reported a net overspend of £4 million across its wage bill in a single month. This was broken down into:
- £1.7 million on substantive staff pay.
- £2 million on bank staff.
- £300,000 on agency staff.
Mr. Miller also confirmed that some non-pay related pressures had contributed to the trust's current financial position, though pay was the dominant factor.
Recovery Plans and Future Risks
Trust officers are now actively working on a financial recovery plan to steer the organisation back towards stability. However, a report to the board warned that this task will be immensely challenging.
The plan faces major threats from ongoing industrial action and the anticipated winter pressures that traditionally stretch NHS services to their limit. The report cautioned that these factors "are likely to lead to further deterioration of the variance against both the original plan and the Financial Recovery Plan," suggesting the deficit could grow even larger.
This financial strain occurs amidst existing operational challenges, including concerns over ambulances being left stuck outside the same busy Birmingham hospitals.
