FINANCE: The PCT has now agreed a contract value of £164.6m in 2011-12 with North Cumbria University Hospitals Trust, its latest finance report shows.

The contract includes £163m of spending related to activity at the trust, and £1.6m for transitional support.

To fund the contract the PCT will draw down £1.6m of the 2 per cent of its budget held back by the strategic health authority, NHS North West, for non-recurrent expenditure, the report states. NHS North West will also return £4.1m that had been lodged with it by the PCT, it adds.

And the report notes: “There remains further agreed contract funding of £3 million that the PCT considers can be achieved through slippage in investments, although until this revenue is identified this remains a risk.”