FINANCE: Croydon Health Services has reduced its clinical income forecast because of problems at its primary care trust.

The estimate was revised down from £175.2m to £171.5m ”as a result of the financial position within NHS Croydon”, a report said.

The primary care trust is being auditedby Ernst & Young after a £28m blackhole opened up in its accounts.

The deficit is thought to relate to accruals and underpaying for activity in 2010/11.

The south London trust reported a surplus of £1.8m in December against a plan of £3.5m, putting the majority of it down to overspend on bank and agency staff.

CHS is still predicting a £3.9m surplus for 2011-12, despite a £1.7m year-to-date slippage on savings.