Harrogate Hospital

Harrogate Hospital has £4.8 million of debt written off, part of a regional £1.5 billion write off

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From the start of this month, £1.5 billion of debt of NHS debt across 16 NHS Trusts the North East and Yorkshire will be scrapped as part of the £13.4 billion debt write off announced by the Health Secretary last week.

This is part of a package of major reforms to the NHS financial system, designed in a collaboration between the Department of Health and NHS England, which will begin from the start of the new financial year.

  • Health secretary announces £1.5 billion of debt will be written off in the North East and Yorkshire, as part of a major financial reset for NHS providers
  • 16 NHS Trusts in the North East and Yorkshire to be rid of historic debt, freeing them up to invest in maintaining vital services and longer-term infrastructure improvements
  • and District Foundation Trust has had £4,894,000 written off, one of the smallest amount of debt of all trusts

The changes will provide much needed financial support during this unprecedented viral pandemic, as well as laying secure foundations for the longer-term commitments set out last year to support the NHS to become more financially sustainable.

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 East and Yorkshire. 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 (revenue) or capital (infrastructure) budgets.

107 Trusts have an average of £100 million revenue debt each, with the two trusts with the highest debts reaching a combined total of over £1 billion.

For hospitals in the  North East and Yorkshire, this means writing off around £1.4 billion revenue debt and £132 million capital debt.

NHS chief executive, Sir Simon Stevens, 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 pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan.

Under the new rules set out in a letter to all NHS Trusts, should hospitals need extra cash this will be given with equity, rather than needing to borrow from the government and repay a loan.

The letters also include details on every local area’s capital budget for 2020/21, providing certainty to the NHS for the new financial year and enabling investment in vital longer-term infrastructure upgrades as soon as possible.

These budgets come on top of the capital facility the Government launched in February to ensure the NHS has access to whatever extra capital investment it needs, without charges, to respond to the COVID-19 outbreak.

The debt write-off package was launched in combination with a simpler internal payment system to help NHS trusts in dealing with the Covid-19 response, agreed with NHS England.

This significant change will mean hospitals will get all the necessary funding to carry out their emergency response, despite many hospitals cancelling or limiting their usual services such as elective surgery or walk-in clinics due to the virus.



Debt write-off – Breakdown by Region

East of England

Name Total (£’000) Revenue Debt (£’000) Capital Debt (£’000)
Cambridge University Hospitals NHS Foundation Trust £340,197 £296,497 £43,700
North West Anglia NHS Foundation Trust £268,201 £212,063 £56,138
Mid Essex Hospital Services NHS Trust £195,642 £195,642 £0
Norfolk and Norwich University Hospitals NHS Foundation Trust £195,131 £168,002 £27,129
East Suffolk and North Essex NHS Foundation Trust £192,681 £189,400 £3,281
Basildon and Thurrock University Hospitals NHS Foundation Trust £151,426 £147,132 £4,294
The Princess Alexandra Hospital NHS Trust £150,467 £146,187 £4,280
The Queen Elizabeth Hospital Kings Lynn NHS Foundation Trust £134,161 £120,043 £14,118
Southend University Hospital NHS Foundation Trust £59,138 £59,138 £0
West Suffolk NHS Foundation Trust £46,495 £31,367 £15,128
James Paget University Hospitals NHS Foundation Trust £7,271 £7,271 £0
Norfolk & Suffolk NHS Foundation Trust £4,849 £0 £4,849
Total £1,745,659 £1,572,742 £172,917

 

London

Name Total (£’000) Revenue Debt (£’000) Capital Debt (£’000)
King’s College Hospital NHS Foundation Trust £735,312 £640,668 £94,644
Barts Health NHS Trust £592,839 £534,313 £58,526
London North West Healthcare NHS Trust £339,718 £324,853 £14,865
St George’s University Hospitals NHS Foundation Trust £315,013 £263,435 £51,578
Barking, Havering and Redbridge University Hospitals NHS Trust £245,378 £228,116 £17,262
Lewisham and Greenwich NHS Trust £193,138 £189,982 £3,156
Royal Free London NHS Foundation Trust £145,656 £142,356 £3,300
Epsom and St Helier University Hospitals NHS Trust £120,589 £102,380 £18,209
Royal National Orthopaedic Hospital NHS Trust £117,924 £67,087 £50,837
Croydon Health Services NHS Trust £103,308 £86,617 £16,691
The Hillingdon Hospitals NHS Foundation Trust £94,951 £80,931 £14,020
North Middlesex University Hospital NHS Trust £57,090 £55,590 £1,500
Kingston Hospital NHS Foundation Trust £37,367 £7,466 £29,901
Whittington Health NHS Trust £27,226 £27,226 £0
Imperial College Healthcare NHS Trust £15,805 £15,805 £0
Total £3,141,314 £2,766,825 £374,489

Midlands

Name Total (£’000) Revenue Debt (£’000) Capital Debt (£’000)
United Lincolnshire Hospitals NHS Trust £377,859 £342,338 £35,521
University Hospitals of Leicester NHS Trust £349,586 £296,575 £53,011
University Hospitals of Derby and Burton NHS Foundation Trust £325,160 £273,594 £51,566
Worcestershire Acute Hospitals NHS Trust £321,580 £298,423 £23,157
West Hertfordshire Hospitals NHS Trust £236,737 £207,207 £29,530
Sherwood Forest Hospitals NHS Foundation Trust £233,958 £219,347 £14,611
University Hospitals of North Midlands NHS Trust £196,093 £194,593 £1,500
Wye Valley NHS Trust £192,195 £164,024 £28,171
Kettering General Hospital NHS Foundation Trust £167,922 £137,017 £30,905
East and North Hertfordshire NHS Trust £146,886 £140,745 £6,141
Milton Keynes University Hospital NHS Foundation Trust £130,852 £115,578 £15,274
Walsall Healthcare NHS Trust £129,967 £119,357 £10,610
University Hospitals Coventry and Warwickshire NHS Trust £112,389 £92,335 £20,054
Northampton General Hospital NHS Trust £107,969 £97,784 £10,185
George Eliot Hospital NHS Trust £91,109 £77,093 £14,016
Nottingham University Hospitals NHS Trust £90,740 £90,019 £721
Shrewsbury & Telford Hospitals NHS Trust £82,554 £80,932 £1,622
Bedford Hospitals NHS Trust £70,910 £68,510 £2,400
Midlands Partnership NHS Foundation Trust £40,100 £40,100 £0
University Hospitals Birmingham NHS Foundation Trust £34,634 £31,792 £2,842
The Royal Orthopaedic Hospital NHS Foundation Trust £19,718 £19,718 £0
East Midlands Service NHS Trust £14,013 £11,184 £2,829
Black Country Partnership NHS Foundation Trust £700 £700 £0
Total £3,473,631 £3,118,965 £354,666

North East and Yorkshire

Name Total (£’000) Revenue Debt (£’000) Capital Debt (£’000)
North Cumbria Integrated Care NHS Foundation Trust £299,319 £290,638 £8,681
University Hospitals of Morecambe Bay NHS Foundation Trust £290,727 £261,952 £28,775
Northern Lincolnshire and Goole NHS Foundation Trust £210,597 £199,895 £10,702
South Tees Hospital NHS Foundation Trust £144,622 £118,194 £26,428
Calderdale and Huddersfield NHS Foundation Trust £140,718 £138,716 £2,002
Mid Yorkshire Hospitals NHS Trust £114,561 £95,766 £18,795
Doncaster and Bassetlaw Hospitals NHS Foundation Trust £70,972 £70,972 £0
Barnsley Hospital NHS Foundation Trust £67,376 £65,571 £1,805
Teaching Hospitals NHS Trust £62,016 £37,329 £24,687
The Rotherham NHS Foundation Trust £57,459 £57,459 £0
Hull University Teaching Hospitals NHS Trust £35,295 £24,576 £10,719
Teaching Hospital NHS Foundation Trust £32,140 £32,040 £100
County Durham and Darlington NHS Foundation Trust £30,108 £30,108 £0
South Tyneside and Sunderland NHS Foundation Trust £22,129 £22,129 £0
Gateshead Health NHS Foundation Trust £12,235 £12,235 £0
and District NHS Foundation Trust £4,894 £4,894 £0
Total £1,595,168 £1,462,474 £132,694


North West

Name Total (£’000) Revenue Debt (£’000) Capital Debt (£’000)
Liverpool University Hospitals NHS Foundation Trust £218,489 £196,493 £21,996
Lancashire Teaching Hospitals NHS Foundation Trust £215,507 £188,707 £26,800
Pennine Acute Hospitals NHS Trust £160,561 £145,810 £14,751
Southport and Ormskirk Hospital NHS Trust £130,542 £129,607 £935
Tameside and Glossop Integrated Care NHS Foundation Trust £106,631 £106,631 £0
East Cheshire NHS Trust £85,757 £85,757 £0
Wirral University Teaching Hospital NHS Foundation Trust £83,884 £83,884 £0
Blackpool Teaching Hospitals NHS Foundation Trust £67,827 £61,827 £6,000
Warrington and Halton Hospitals NHS Foundation Trust £57,798 £56,624 £1,174
Stockport NHS Foundation Trust £46,055 £41,490 £4,565
Bridgewater Community Healthcare NHS Foundation Trust £26,040 £26,040 £0
Countess of Chester Hospital NHS Foundation Trust £24,468 £16,917 £7,551
St Helens and Knowsley Teaching Hospitals NHS Trust £18,707 £18,707 £0
Liverpool Women’s NHS Foundation Trust £14,572 £0 £14,572
Mid Cheshire Hospitals NHS Foundation Trust £13,188 £4,997 £8,191
Alder Hey Children’s NHS Foundation Trust £8,000 £8,000 £0
East Lancashire Hospitals NHS Trust £7,748 £7,748 £0
Total £1,285,774 £1,179,239 £106,535

South East

Name Total (£’000) Revenue Debt (£’000) Capital Debt (£’000)
Brighton and Sussex University Hospitals NHS Trust £293,485 £254,833 £38,652
Medway NHS Foundation Trust £290,997 £268,775 £22,222
East Sussex Hospitals NHS Trust £232,653 £222,998 £9,655
East Kent Hospitals University NHS Foundation Trust £133,819 £124,919 £8,900
Portsmouth Hospitals NHS Trust £125,165 £122,365 £2,800
Buckinghamshire Healthcare NHS Trust £107,696 £100,954 £6,742
Isle of Wight NHS Trust £90,925 £90,925 £0
Dartford and Gravesham NHS Trust £49,283 £44,391 £4,892
Maidstone and Tunbridge Wells NHS Trust £26,122 £26,122 £0
The Solent NHS Trust £9,109 £9,109 £0
Hampshire Hospitals NHS Foundation Trust £8,000 £8,000 £0
Queen Victoria Hospital NHS Foundation Trust £6,391 £6,391 £0
Southern Health NHS Foundation Trust £5,000 £5,000 £0
Kent & Medway NHS & Social Care Partnership NHS Trust £2,300 £2,300 £0
Total £1,380,945 £1,287,082 £93,863

South West

Name Total (£’000) Revenue Debt (£’000) Capital Debt (£’000)
North Bristol NHS Trust £172,171 £172,171 £0
University Hospitals Plymouth NHS Trust £141,984 £141,984 £0
Gloucestershire Hospitals NHS Foundation Trust £127,860 £106,229 £21,631
Yeovil District Hospital NHS Foundation Trust £89,766 £84,071 £5,695
Great Western Hospitals NHS Foundation Trust £61,895 £60,473 £1,422
Weston Area Health NHS Trust £57,582 £57,582 £0
Royal Cornwall Hospitals NHS Trust £42,594 £36,818 £5,776
Taunton and Somerset NHS Foundation Trust £24,917 £19,444 £5,473
Poole Hospital NHS Foundation Trust £24,579 £21,524 £3,055
Avon and Wiltshire Mental Health Partnership NHS Trust £23,398 £22,048 £1,350
Salisbury NHS Foundation Trust £21,082 £21,082 £0
Northern Devon Healthcare NHS Trust £20,003 £20,003 £0
Torbay and South Devon NHS Foundation Trust £17,731 £14,731 £3,000
Total £825,562 £778,160 £47,402







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