FINANCE: Shortfalls in North Cumbria University Hospitals Trust’s 2011-12 savings programme have nearly doubled the cost reductions it will need this year, its latest finance report shows.

North Cumbria’s “national efficiency target” for 2012-13 was £8.7m, the report explained. But due to the shortfall in the trust’s “cost improvement programme” for 2011-12, its actual target would be £16.9m.

The trust, which is in the process of being taken over by Northumbria Healthcare Foundation Trust, has planned for a £1m surplus in 2012-13.

However, the report added: “The trust’s CIP target and its planned surplus are both predicated on the trust receiving strategic support funding totalling circa £19m from the strategic health authority, NHS North of England.”

North Cumbria had planned to cut costs by £15.2m last year, but was forecasting full-year savings of £8.4m, with additional funding secured to cover the gap.

The report stated that “having secured additional income to offset the shortfall in CIP in 2011-12, the trust remains confident that it will achieve the year end forecast of £1m surplus” for the financial year just ended.