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Moray health bosses AGREE ‘contentious’ budget cuts to plug £12.2m shortfall as concerns raised about future of Elgin’s mental health ward

Councillor Scott Lawrence raised concerns as cuts to services, including mental health care, community hospitals, and palliative care, were approved.

Dr Gray's hospital exterior.
Concerns were raised about the mental health ward at Dr Grays. Image: Jason Hedges/DC Thomson

A series of contentious cuts to Moray’s health and care services have been approved to help address the budget’s £12.2m black hole.

Last week, we reported on how mental health services, community hospitals and care for those with learning disabilities were at risk.

Bosses warned there were “no easy choices” to make savings with every single service affected.

Even those not subject to a specific budget cut are being ordered to reduce their costs by 3.4%.

Dr Grays. Image: Jason Hedges/DC Thomson

Now, the Moray Integration Joint Board (IJB) approved its 2025/2026 budget.

It oversees services delivered by the Health and Social Care Moray.

The £9.4m worth of cuts includes a “review” of community hospitals, “redesigning” mental health care at Ward 4 at Dr Gray’s and driving down prescription costs.

Palliative care arrangements, the GMED out-of-hours support and staff overtime will also be affected.

Meanwhile, £1m is due to come from savings.

Chief Financial Officer Deborah O’Shea revealed earmarked reserves will be used to cover the remaining £1.5m and balance the budget.

Ward 4: Future of mental health provision

Dr Gray’s hospital. Image: Jason Hedges/DC Thomson

During the meeting, councillor Scott Lawrence raised concerns about the future of the mental health ward at Dr Gray’s in Elgin.

Earlier this year, staff raised fears it would take a “significant incident” to bring improvements to the ward after inspectors sounded the alarm.

There were previous refurbishment plans to improve the ward, however they were cancelled due to NHS Grampian’s financial position.

Scott Lawrence on Forres High Street.
Councillor Scott Lawrence pictured. Image: Jason Hedges/DC Thomson

Mr Lawrence said: “I have a few concerns which I have voiced already about the future of Ward 4.

“Specifically about people in mental health crisis and seeking emergency care in Moray and eventually anything that may lead to the downgrade of Dr Grays hospital.”

Head of service Sean Coady said “no decision” has been made yet on its future and discussions are ongoing.

In Full: 20 cuts by Health and Social Care Moray

  • Working with GP practices and care homes to reduce prescription costs – £169,000
  • Reduction in staff overtime – £200,000
  • Redesign of mental health in-patient service at Dr Gray’s Ward 4 including use of locums – £261,000
  • Redesign of GMED out-of-hours service – £110,000
  • Review of self-directed support (SDS) packages to increase recovery of surplus direct payment funds – £350,000
  • Review and redesign of internal care at home service – £122,000
Dr Gray's hospital exterior.
In-patient mental health services at Dr Gray’s will be “redesigned”. Image: Jason Hedges/DC Thomson
  • Review of provision of palliative care services – £117,000
  • Review of care packages – £1.7m
  • New model of planned and emergency respite provision – £413,000
  • Embedding a proportionate care approach to meeting the complex moving and handling needs of individuals – £555,000
  • Redesign of nighttime model of care for people with learning disability – £277,000
  • Redesign of community hospitals – £200,000
  • Review of contracts with commissioned service providers – £350,000
  • Review of day services – £220,000
  • Review of staffing arrangements for complex and challenging behaviour – £159,000
  • Review of use of beds in care homes for people with learning disability – £491,000
  • Digital and technology strategy – £100,000
  • Review of transport contract arrangements – £146,000
  • Vacancy management across all services – £1.135m
  • A 3.4% budget reduction on all services not subject to specific budget cut – £2.021m

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