10 April 2024
“At our public board meeting last Thursday (4 April 2024) Board Members were updated on our financial position and the scale and high level nature of savings that will be required as we move into the new financial year and beyond.
“Our opening financial position in April 2024 is a recurring deficit of £28 million. Without any cost savings being made this overspend will rise to around £40 million at the end of March 2025 because of inflation, our response to increased demand and the cost of investments needed to deliver new health technologies and services.
“On 15 March 2024 we submitted a draft financial plan to the Scottish Government (SG) for their consideration. The plan does not present a balanced financial position over the medium term and we were therefore not in a position to ask the Board to agree a financial plan at the meeting. However an interim budget was agreed against which progress will be reviewed at the public board meeting in June.
“We remain in regular discussion with Scottish Government and the Board were advised that a meeting with SG colleagues to discuss next steps was to take place the day following the board meeting (5 April).
“This was a positive meeting at which we agreed to provide additional information for SG colleagues on the delivery of our identified savings plans and the potential implications of steps that would be required to reduce our projected overspend. SG colleagues agreed to provide further feedback in advance of our meeting in June to support the Board’s discussion at that meeting.
“Although financial challenges are not unique to the Borders with most other health boards in Scotland facing a similar position, we know that there needs to be further progress on identification and implementation of measures that support improvement to the in-year financial position in 2024/25.
“We will continue to be honest and transparent about our financial position, and clear with our staff, patients and the public that, with the level of savings required (more than 10% of our total budget), this will have an impact on the services we provide and we will need to make some significant and radical decisions.
“We are working closely with our teams to come up with options to present to the Board that will set out the choices that we face. We had hoped to be in a position to do this by April however realistically this work is likely to continue over the next two months with the intention of agreeing our financial plan at our board meeting in June.
“We continue to engage with public representatives and other stakeholders through our programme board structures, and consideration of what the implications of our financial position will mean for the way in which we progress the next stage of ‘Time for Change’ discussions with our communities and stakeholders is ongoing.”
Board papers are available to view here