NHS debt worth £1.5 billion is scrapped in North West

It is part of a package of major reforms to the NHS financial system, designed by the Department of Health and NHS England, which begin from the new financial year.

The changes provide financial support during the coronavirus pandemic, as well as lay secure foundations for the longer-term.

Health Secretary Matt Hancock said: “As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.

“Today I’m pleased to confirm the value of this package for the North West. This £1.5 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.”

While many NHS trusts manage strong finances, under the existing rules, some took out loans to plug financial gaps in their day-to-day or capital budgets.

A total of 107 trusts nationwide have an average of £100m revenue debt each.

For hospitals in the North West, this means writing off around £1.4 billion revenue debt and £135m capital debt.

Wrightington, Wigan and Leigh NHS Foundation Trust is not included in those having debt scrapped.

NHS chief executive Sir Simon Steven said: “We’ve advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position - not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements.”

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