NHS Sutton & Merton is back in balance following an SHA bail-out

The total includes £8.6m to cover a forecast deficit in November - agreed at an NHS London challenged trust board meeting on 12 January - plus £12.7m originally requested from the strategic health authority.

The PCT reported a £15m forecast deficit at month six, which was amended to £11.6m at month seven. A further reduction was made in month eight following confirmation of funding of redundancy, reducing the deficit to £8.6m.

Following confirmation from NHS London in month nine, challenged trust board funding of £8.6m was provided and the forecast outturn was amended to a balanced position.

The troubled south-west London primary care trust was also let off paying 1 per cent of its funding allocation for 2011-12 into the NHS London surplus reserve but its contribution will have to covered by rhe other four PCTs in its sector: Kingston, Richmond, Wandsworth and Croydon, a finance paper said.