FINANCE: The Sheffield primary care trust needs to find a further £5m savings to break even in 2010-11, despite a slowing in elective activity at Sheffield Teaching Hospitals Foundation Trust during the winter.

The PCT is forecasting it will breakeven but said there are “significant financial risks and substantial challenge” to deliver that. Its position at the end of December had improved by around £1m since the previous month.

This was largely because of “a significant reduction in the level of elective activity as a result of disruption caused by the adverse weather in early December”, at both Sheffield Teaching Hospitals and Sheffield Children’s Hospital Foundation Trust.

There was an increase in non-elective hospital activity but this is paid at the 30 per cent marginal tariff, leaving the PCT with an improved position.