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Concerns for the future of hundreds of NHS staff on the East Coast appear to have been lifted after a last minute deal was agreed. Managers at the Scarborough and North East Yorkshire NHS Trust have been told its 'historic debt' of 拢20.7 million will be written off, provided the trust can return to a sound financial footing.

The historic debt of 拢20.7 million has been built up by repeated overspending by the Scarborough and North East Yorkshire NHS Trust over recent years.

Speaking on 91热爆 Radio York on September 11th 2007, Ian McInnes, the Chief Executive of the Trust said he hoped job losses could be kept to an "absolute maximum" of 50. He said they hope this can be done without the need for any compulsory redundancies and he is confident this can be achieved.

News of this deal has been broadly welcomed by both trust managers and union officials, although people like Dr Peter Carter, General Secretary of the Royal College of Nursing remain concerned. He's still worried about the impact of saving 拢10.5 million this year, which is more than 10% of the trust's overall budget.

How the story developed...

Here's what we wrote when the story broke.

July 18th 2007:

Managers at the Scarborough and North East Yorkshire NHS Trust believe the job losses are the only way they can ensure the long term future of health care on the East Coast. Others fear describe the level of cuts as "unprecedented" and say they can't be achieved without having a big impact on the quality and level of health care which is available.

What's the problem?

The financial problems faced by the Scarborough and North East Yorkshire NHS Trust go back several years. Over this time they have accumulated debts in the region of 拢20 million but the Trust also currently faces an overspend this year which is forecast to be around 拢7 million.

This money has to be paid back and the Trust aims to start doing this by saving 拢10.5 million on its current budget by the end of the 2006/07 financial year.

What's being proposed?

The Trust's recovery plan covers three years and aims to save 拢28 million during that time. The first phase is to save 拢10.5 million by the end of the current financial year. Overall 600 jobs will be lost, 400 of these will have to go by the end of the current financial year. The plan outlines the closure of three wards at Scarborough and Bridlington hospitals, a reduction of 150 beds, from 400 at present down to 250.

What is the Trust saying?

Managers at the Scarborough and North East Yorkshire NHS Trust says this rescue is 'do able' but they warn that if they don't make these savings, it will be added to their existing debt and in the words of the Trust Chairman, Sir Michael Carlisle, it will be "a downward spiral." Ian McInnes, who is the Chief Executive of the Trust, describes it as "a tall order." He says the Trust has a large number of staff working in non-clinical areas, which they need to look at. He says they also provide some services which are not normal NHS type core business, so they need to look at that as well. Mr McInnes maintains the future of the Accident and Emergency Unit at Scarborough hospital is safe, he says they are committed to A&E "24 hours a day, 7 days a week, 52 weeks a year."听

Members of the Trust's Board of Directors are concerned that if they fail to make the savings of 拢10.5 million by the end of March, the Trust will be declared insolvent and could be wound up, which they believe will lead to services being absorbed by a neighbouring trust - such as York or Hull - which might not be as committed to maintaining such a high level of services at Scarborough Hospital.

What are other people saying?

The scale of the job cuts has stunned many people who say they were aware of a problem and they knew some jobs would have to go, but they never imagined it would be on this scale.

The health union, Unison, has called on the government to intervene and describe the level of cuts as "unprecedented." Ray Gray, the union's regional organiser says the announcement has caused a lot of shock and sadness and describes losing a third of the Trust's entire workforce as a "huge cut in staff." He says he will "take some convincing that you can take a third of staff out of a trust like Scarborough and still function safely."

Robert Goodwill, the Conservative MP for Scarborough and Whitby, says described the level of the cuts as "devastating." He believes it is unprecedented in the UK for a hospital to cut its workforce by a third. He says it will have a huge economic impact on Scarborough and the East Coast and compares it to the impact the closure of a factory would have.

Councillor Tom Fox, the leader of Scarborough Borough Council, echoes the comments of Robert Goodwill, saying he is deeply shocked by the extent of the job losses and it will have a "significant" economic impact.

Leo McGrory, who is the chair of the Patients Forum, says he is "horrified and surprised." He's worried capable staff may now decide to leave, which could signal the beginning of the end for the Trust. He was in touch with the Health Secretary last year over concerns the Trust would be run down or absorbed by a neighbouring Trust.

What happens next?

There will now be a three month period of public consultation on the proposals which will end in October. The Board of the Scarborough and North East Yorkshire NHS Trust will then make its final recomendations.