Oxford Radcliffe productivity CIP savings at risk

The trust plans to save £6.1m in “staff productivity” costs this year, as part of a £52.7m cost improvement plan worth 7.6 per cent of annual turnover.

However, according to the trust’s quarterly finance report, only £2.1m of those have been given a green risk rating, with £1m rated amber and the remaining £3m rated red.

Pay in month one of 2011-12 was £1m over budget by £1.03m, “principally due to the failure to deliver pay related cost improvements in April”.

Meanwhile £500,000 of £1.8m facilities savings have also been rated red, and a further £11.4m of CIP savings are yet to be identified.

Overall, £33.3m of the trust’s CIP programme is rated green, and £4.5m is rated amber.

A report by the trust’s chief executive, Sir Jonathan Michael, said: “Given that workforce costs account for 65 per cent of the trust’s overall cost base we will inevitably have to reduce these costs if we are to achieve our savings targets.”

In 2010-11 the trust achieved a 0.2 per cent surplus, of £1.3m. However in 2011-12 it is planning a £6.3m, 1 per cent surplus.