Huge deficits have opened up at two trusts that were last month predicted to balance their books at the end of the financial year.

Mid Yorkshire Hospitals Trust is forecasting a £20m deficit for 2011-12, despite £14m additional support from commissioners.

And NHS Croydon in London is now predicting ending the financial year £27m in the red.

Both were predicting to break even in the Department of Health’s quarter 2 report, released in December.

NHS North of England board papers said the NHS Yorkshire and the Humber non-foundation trust sector would be in overall surplus if it were not for Mid Yorkshire.

The papers said that at the end of November the £463m-turnover trust had an overspend of £10.8m, and projected year-end overspend of £19.7m.

“The trust is dealing with a range of service and financial performance issues, and these are being overseen by a health economy foundation trust programme board, with involvement from the [strategic health authority],” the paper said.

It said the trust faced the challenge of a £30m cost improvement programme and the need for the health economy to agree an in-year financial gap of £14m.

“Commitment to resolve the £14m gap has now been given by the [primary care trust] cluster [Calderdale, Kirklees and Wakefield] and it has also entered into discussions with the trust around firming up projected contract overtrades,” the paper said.

“A review commissioned by the new director of finance from an independent firm of accountants has identified significant shortfalls in the projected cost improvement plan delivery figures, as well as other budgetary and in-year pressures.”

The south west London cluster, of which NHS Croydon is a part, is now predicting a surplus of £5m, down from the £32m planned.

The cluster’s board was due to hear at a meeting today that NHS Croydon had an acute overspend of £11.5m at month 7.

Consultants Ernst and Young are due to report on the problems at the PCT after a cluster investigation last year revealed “a number of significant cost pressures originating from under-accruals in 2010-11”.

It said: “These included items of expenditure with no budget or insufficient level of budget and a planned year-on-year reduction in acute expenditure of 5 per cent not materialising.”