Chair's statement: financial sustainability of NHS bodies

"This is a deeply alarming report. I do not believe it is any exaggeration to say that the future sustainability of our National Health Service is at risk.

You just need to look at these figures: 22 NHS trusts in deficit at the end of March this year compared to 5 the year before. The number of foundation trusts in deficit has more than doubled from 20 to 41. The gross deficit of NHS and foundation trusts is up by an extraordinary 150%, from £297.2 million in 2012-13 to £743.3 million in 2013-14.

Some trusts are only getting by on handouts. The amount spent by the Department of Health on bailing out trusts in financial distress has doubled, rising to £511 million in 2013-14 from £263 million in 2012-13.

Things are getting worse rather than better and we all know that when trusts are under this kind of financial stress it is the quality and safety of patient care that can suffer. An increasing proportion of foundation trusts cannot meet the terms of their licence, including meeting key measures of quality and outcomes, and the NHS Trust Development Authority had concerns about more than half – 55 of 98 – NHS trusts.

The Department, NHS England, Monitor and the NHS Trust Development Authority between them must explain to my Committee how they are going to get a grip on this wholly unsustainable situation and get our NHS back on track."

Further information

National Audit Office report: Financial sustainability of NHS bodies