FINANCE: The trust’s finance report said the hole in this financial year’s cost improvement programme was only offset by a reserve of £2m.

The papers also noted that for April the trust was “£245k below plan and expenditure, £108k more than plan, giving a netposition of £353k worse than plan”.

The trust’s historic problems with liquidity were identified last year as a factor counting against its foundation trust bid.

The other risk announced by the finance director was an “income gap of £3m following contract negotiations”.

It said this had been £6m but was reduced by “expected overperformance” of £1m, £1m in rental income, £500k in reablement funding and using £500k of reserves.