South Devon overachieving surplus

By the end of September the trust has delivered an income over expenditure surplus of £1.7m and achieved its internal cost reduction target through a combination of delivery of its cost improvement plan and under spends.

Income is £260,000 above budgeted levels, comprising a £148,000 adverse variance on healthcare contract income and a £409,000 favourable variance on other income including the pharmacy manufacturing unit, which has overachieved its targeted surplus by £452,000. Research and development programmes are also over performing, by £117,000 against plan.

However, a report to the board warns a further £2.1m cost reduction as part of the quality, innovation, prevention and productivity agenda has not been achieved and is not being offset by over performance in income.

The report states: “Trends in income reduction need to stabilise before plans can be formalised around reduction in costs for those services whose income is reducing.”