Heatherwood trust risks exceeding budgeted deficit

July board papers said the trust’s forecast is still in line with plan, “although there are now significant risks to this which require immediate mitigation”.

A “downside forecast” of £5.6m deficit has been calculated, if the mitigations fail.

The trust recorded a £1.04m deficit in May – worse than the planned £772,000.

The papers reported risks including:

• “Modular” wards being needed all year despite only being funded for 12 months;
• The pathology cost improvement plan, worth £225,000, was flagged as red;
• A potential £300,000 shortfall in corporate savings.