GIDLEY CONDEMNS LACK OF FINANCIAL TRANSPARENCY IN NHS

12.00.00am GMT Tue 18th Dec 2007

Local hospital trusts are using bank loans to balance the books, Winchester and Eastleigh trust was given a loan for £5 million while its neighbour Southampton University Hospital Trust was given a £25 million government loan to help bail them out.

The loans which were given in March 2007, just two weeks before the end of the financial year, helped both trusts achieve a slight surplus this year following the record deficits in 2005/6 where Southampton University Hospital Trust recorded a deficit of nearly £13million while Winchester and Eastleigh were £3million in debt.

The Treasury is charging annual interest of 5.65 per cent on both loans, meaning Southampton will be paying back over two million pounds in interest and Winchester and Eastleigh over four hundred thousand pounds.

Commenting on the figures, local MP Sandra Gidley said:

"This completely undermines Government claims that the NHS is back in the black. In truth, we now are seeing a credit culture in our health service.

"The amount of interest which will be paid on these loans, in some cases, is staggering. This money could make a real difference if spent on patient care.

"The Government promised more openness with NHS finances - yet once again they are trying to fiddle the figures to make it look like the NHS is on sound financial footing when it clearly isn't.

"The worry now is how this will affect this year's position"