Fife health bosses reveal 'most significant risk' to finances in £55m black hole

NHS Fife is facing an £8m bill to fill its black hole as continuing cost pressures and unachieved savings brought forward from previous budgets impact, and the Integrated Joint Board’s budget is the biggest issue.

Since March, NHS Fife has been warning the Scottish Government that it can’t balance its books and is warning of a £55 million budget gap by March 2025.

At this month’s board meeting, Margo McGurk, director of finance, told members: “The financial position of NHS Scotland and NHS Fife for 2024/25 represents the highest level of challenge since devolution. The whole system is faced with challenges, and I want to recognise the context when we’re talking about financial performance.”

NHS Fife chair Pat Kilpatrick pinpointed the IJB budget as “the most significant risk” to NHS Fife’s financial outcome.

“We need to be really clear and the timescales need to be put around this to make sure we can work with the IJB to understand what it’s going to do and how it’s unlikely we’re going to be able to fund these gaps. It just puts us further into overspend.” A recovery plan is to be discussed this week, but it would still leave a financial gap. However, it’s not all bad news. In July, the health board received an unexpected, one-off £3.4 million cash boost from Holyrood, which brought Fife’s projected end of the year budget gap down to £51.3 million.

Ms McGurk said that the rate of overspend is “slowing and now flat-lining” now as well.

“In July the in-month position flat-lined with that of June which is positive,” her report stated. “However, it is essential that we increase the pace of savings delivery and do not fall behind in planned trajectories.”

NHS Fife will continue to work towards its savings goals and the IJB recovery plan will be discussed by HSCP members on Friday morning.