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NHS Grampian facing £77 million budget hole in ‘most challenging year’ ever experienced

Interim chief Adam Coldwells told staff they don't have the cash to provide extra bed spaces at Aberdeen Royal Infirmary.

Facade of NHS Grampian.
NHS Grampian is under severe financial pressures. Image: Kenny Elrick/DC Thomson.

NHS Grampian is preparing to make “eyewatering” savings of more than £77 million in 2024-25 and faces an “unprecedented challenge”.

The extent of the financial pressures have been laid bare in an update to members of the NHS Grampian board ahead of their next meeting on Thursday.

In his report, Adam Coldwells, interim chief executive, said indications are that the health board will have to “identify and achieve savings in excess of £77m”.

It follows well-documented pressures on Aberdeen Royal Infirmary which has seen more than a dozen ambulances queuing outside on multiple occasions.

First Minister Humza Yousaf previously said ambulance waits outside the flagship hospital are “simply not acceptable” and cannot be justified. 

Ambulances piled up outside Aberdeen Royal Infirmary. Image: DC Thomson.

A total of 32 new acute beds were opened last month – at a cost in excess of £5m – to help ease pressures.

Some patients are currently being treated in corridors and admission rooms with the city hospital “very full lots of the time”, said Mr Coldwells.

‘Eyewatering sum’

He told staff in an online Q&A that while he “very keen” to pursue more additional beds but simply doesn’t have the funds or physical space.

He described the £77m savings as an “eyewatering sum of money”.

“We need to save £210,000 a day every single day for 365 days of the year which again is an incredible sum of money”, Mr Coldwells added.

In an update to the board, Mr Coldwells said forecasts anticipate a “more challenging year for all health boards” than “ever previously experienced”.

NHS Grampian interim chief executive. Adam Coldwells. Image: Kath Flannery/DC Thomson.

North East Tory MSP Tess White described the budget cuts as “hugely concerning” and said it highlights the “worsening crisis” facing the health service.

She laid the blame with the SNP for “years of wasteful spending and sluggish growth”.

But the Scottish Government is facing a cut to its capital budget for the next five years by 10% in real terms.

Health boards across Scotland have been told to pause all new NHS projects for at least two years, with the new national treatment centre in Aberdeen put on ice.

‘Sustained pressure’

NHS Grampian has previously said their hospitals are under “sustained pressure” due to the volume of acutely ill patients, delayed discharges and staffing pressures.

One source told the P&J that “too many people are going to hospital, and it doesn’t have enough beds”.

They added: “I don’t want to scare members of the public, but the reality is, there’s a significant lack of exposure to emergency calls.

Humza Yousaf addressed the concerns at First Minister’s Questions last month. Image: PA.

The first minister was asked about the pressures at ARI at Holyrood on February 29.

He said: “I’ve been extremely concerned about the reports we’ve heard from paramedics directly.”

In his report, Mr Coldwells said savings will be achieved through a “mix of close control over day-to-day spending, significant focus on organisation-wide areas of high expenditure and transformation driven by clinical services”.

The health board will present its medium-term financial plan to a future meeting of the health board in April.

‘Financial challenge’

Health Secretary Neil Gray said the government is providing more than £14.2 billion for NHS boards in 2024-25 to support services, a real terms increase of almost 3%.

He added: “The Scottish Budget takes NHS Grampian’s overall funding for 2024-25 to £1,176.4 million with its resource budget having increased by 27.1% in real terms between 2010-11 and 2024-25.

“Despite our significant investment, the financial climate remains extremely challenging.

“The UK Government’s spring statement set out health consequentials of £237m – less than the £470m in-year health funding received for 2023-24 and less than is needed given the pressures faced.

“In this context, we are continuing to work with each health board to recover and reform services and address the financial challenge this year and beyond.”

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