£1.5m from reserves to cover health overspend as Fife looks to recovery plan

The board met on Friday morning to discuss the latest financial update which stated “a recovery plan and immediate action is required.”

The partnership is currently reporting a deficit of £4.751m two months into the financial year.

Audrey Valente, chief finance officer, highlighted a £4 million overspend for GP prescriptions. “This is due to the cost of items being significantly higher than the budget," she said.

Additional energy costs are adding to the overspend - hospital and long term care was another area of significant overspend. Ms Valente said the overspends were partially offset by significant underspends in community budgets, but she sought approval for an additional £1.5 million from reserves for the current year.

Earlier this year, the IJB approved the earmarking of £10 million from reserves in anticipation of delays in delivering savings within the first six months of the current financial year. However, if the savings delivery delays drag on throughout the, more funding will be needed.

“If we’re unable to reduce our overspend by the end of the year, we’ll be required to further utilise our reserves,” Ms Valente concluded.

A progress report on the mid-term financial strategy stated that as of June, 67% of IJB budget savings were on track to be delivered or have already been delivered this year.

A financial recovery plan will be brought to the next IJB meeting in September.