FINANCE: NHS London has ordered non-FTs to plan for a 1.5 per cent deflation in the tariff for the next five years in their applications for FT status.

Previously Kingston Hospital had assumed a 1 per cent deflation for the next three years with a neutral position in year four and a 1.5 per cent uplift for year five.

A report to the trust’s board said: “The additional tariff deflation now required adds £2.7m of pressure to the inner three years and £7.4m of pressure to the outer two years.”

The £199m-turnover trust said it would have to icrease savings plans to compensate.