Financial duties breached in four Welsh boards

A report – set out in a new data tool – said health service funding had increased by £1.7bn in the year, much of it to cover Covid costs. Monthly financial returns to the Welsh government showed a net additional spend of £1.1bn was due to Covid, and of this £702m was due to non-pay expenditure and £477m higher pay bills.

The auditors said that though four boards failed their duty to break-even over three years, the total in-year deficit fell from £89m 2019/20 to £48m in 2020/21. The three-year cumulative overspend also reduced by £119m to £233m.

However, two of the health boards that missed their three-year break-even duty also failed to break-even in-year. Though one of these, Hywel Dda University Health Board, showed an improving trend in its financial position, the finances at Swansea Bay University Health Board again deteriorated.

The two other boards – Cardiff and Vale and Betsi Cadwaladr – made significant progress, the auditors said, breaking even in 2020/21.

Wales auditor general Adrian Crompton (pictured) said: ‘Very considerable funding has been made available, largely to address the pressures created by Covid-19. Yet the financial position of the NHS remains extremely challenging as it continues to manage the ongoing Covid-19 pandemic, shifts to recovery mode and responds to new cost and demand pressures.’

He added that he intended to publish in the autumn a more detailed report on the big challenges facing local public services in recovering from the pandemic.

Mr Crompton added: ‘This has been an exceptional year and I want to pay tribute to the dedication of all NHS Wales staff – those on the frontline and those working behind the scenes to support the delivery of life-saving services.

Welsh NHS Confederation director Darren Hughes said additional financial support allowed health boards and trusts to respond to the pandemic.

He added: ‘Despite the overspend, there are largely positive signs of improvement in the financial position of health boards. However, we know there will be further financial challenges ahead while the NHS recovers and resumes many services, all while living alongside coronavirus and trying to ensure staff and the public stay safe.’

Eluned Morgan, health and social services minister, was pleased with the progress Cardiff and Vale and Betsi Cadwaladr university health boards had made in returning to in-year financial balance.

She added: 'As announced by my predecessor last year, once these organisations have met their three-year duty to break-even, then any historical deficits they have incurred will no longer be repayable. I expect Cardiff and Vale University Health Board to achieve that position at the end of this financial year.'