NHS leaders in Birmingham and Solihull say they are on track to balance the books after reducing a major deficit. But with strict targets ahead, financial challenges remain.
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00:00At the start of the year, Birmingham and Solihull's NHS board was facing a serious financial challenge.
00:11Their deficit had grown to over £80 million, leading to increased scrutiny from NHS England.
00:17A range of measures were introduced to bring spending under control. Now, ten months into
00:21the financial year, the deficit has been reduced to £44 million, a major step towards balancing
00:27the books. One of the biggest challenges has been pay. The cost of permanent staff has
00:32risen, but the board has managed to cut down on agency spending, which had been a key driver
00:37of the shortfall. They've also had to make some difficult financial decisions to keep
00:42costs under control, with a focus on making savings while still maintaining services.
00:47Despite the progress, NHS bosses say the challenge isn't over. They still need to meet their
00:52breakdown target by the end of the financial year, meaning there's no room for unexpected
00:56costs or delays. Winter pressures, rising demand and ongoing budget constraints could
01:02all make things harder in the months ahead. The board says their current plan is working,
01:06but it will take continued discipline to stay on track. Next year, they'll face another
01:11strict budget with little flexibility for extra spending. NHS leaders say they're confident
01:16they can meet the challenge. They'll need to find more ways to manage costs while ensuring
01:21patients continue to receive the care they need. For now, Birmingham and Solihull's NHS
01:26remains on track. The deficit has been cut, the budget is under control and the board
01:31is working towards financial stability. But with long-term pressures still in place, tough
01:36decisions are likely to continue well into next year.