The NHS is facing a �620m deficit this year

Shadow Health Secretary Andrew Lansley said the cost of pay rises for GPs, consultants and other NHS workers had caused the financial crisis.

The health service is facing a �620m deficit this year - three times higher than in 2004-5.

But ministers said the situation would be reversed in coming years.

The government is sending teams of accountants into the 18 worst-hit trusts to help them turnaround their finances.

Some of these contracts have cost more than expected Patricia Hewitt, health secretary Debt 'may force NHS service cuts'

But the effects of the deficits are already beginning to hit.

Some trusts have been forced to delay operations, close wards and impose recruitment freezes.

The latest to come to light is in Kent where local health bosses at South West Kent and Maidstone Weald primary care trusts have told doctors not to carry out any new elective operations or outpatient appointments apart from in the most urgent cases until the next financial year.

Mr Lansley said: "There is a systematic problem going on here. It is not just poor financial management by individual trusts, although that may be the case for some.

"Most of it has come from the Department of Health which has imposed substantial additional costs."

In recent years, new deals have been agreed for GPs, hospital consultants and other workers such as nurses and non-clinical staff, significantly boosting their pay.

Cost

Mr Lansley said the government had underestimated the cost of the GP contract by �1.5bn, consultants by �400m and had no idea about the deal for other NHS staff.

He said the contracts had meant that up to three-quarters of the extra money being pumped in to the health service had gone on pay rises and he also called for NHS trusts to be given more freedom from central control.

HAVE YOUR SAY A full review of how the NHS is run is long overdue Barry, Peterborough Send us your comments

Health Secretary Patricia Hewitt said she did not recognise the figures, adding the extra funding had paid for more staff.

"Some of these contracts have cost more than expected. But the important thing is that the health service is improving and will get better. It is all about creating a more patient-led NHS."

She said in coming years no-one would have to wait longer than 18 weeks for an operation and patients would get more choice over where they were treated.

She also promised the financial crisis would be solved with help from the teams of accountants and by 2006-7 the NHS would be back in balance.

"It is important to remember the vast majority of trusts are operating within budget."

But the naming of the trusts with the most problematic debts has angered doctors.