Tavistock and Portman FT £721,000 behind income target but still on track for surplus

The finance report said: “But allowing for the contingency reserve, we are still well in line to achieve the year-end budget of £150,000.”

Cost reductions mitigated the effect of the income reduction and the cash balance at the end of January was above plan at £4.9m while the cash forescast for 2011/12 remained uchanged.

Roughly half the income shortfall came from lower than expected consultancy earnings, which were £340,000 under plan.

The report added: “Research income is below budget by £113,000 and this trend is expected to continue.”

The trust has a budget of around £32m.