FINANCE: University Hospitals of Morecambe Bay Foundation Trust had a year-to-date deficit of £1.2m at the end of September, £800,000 worse than its expected position to that point in the year, newly published minutes states.

According to the minutes of Morecambe Bay’s October board meeting, its “financial performance in September was worse than planned by £201,000, with a deficit of £7,000 incurred compared to a planned surplus of £194,000”.   

This brought the deficit for the year to date to £1.2m, or £799,000 below plan.  

Morecambe Bay’s savings plan was also below plan, delivering savings of £3.8m against a target of £5.1m for the year to date. 

“The main area for concern is the delivery of the cost improvement programme which has had an adverse effect on pay costs,” the minutes state.

They add: “Since the approval of the Investment Policy there had been a down grading of most of the major bank’s risk rating affecting the Trust’s current investments. A revision to the Investment Policy was therefore required.”