Funds are tight

The Conservatives say that out of 40 trusts it surveyed, 23 have said their preliminary figures indicate they ran out of money in the year to April.

The Tories say the research was based on figures obtained from trust board meetings and local press coverage.

These figures paint a truly bleak picture Dr Liam Fox

But the figures have been hotly disputed by the Department of Health.

Shadow Health Secretary Dr Liam Fox said: "These figures paint a truly bleak picture.

"They are bad enough in themselves. Twenty out of 40 hospitals surveyed have deficits of over �1 million. The combined total is over �125 million."

Dr Fox said the situation had "deteriorated very markedly" in the last 12 months.

In 2001-2, only 19 out of 318 trusts had deficits of more than �1 million.

And the total for all trusts with any deficits was less than �70 million.

"These figures confirm yet again that despite the high increases in taxation and spending the financial situation of many hospitals has worsened.

"Deficits from the previous year must be cleared from the current year's budget, with inevitable reductions in services offered."

Government response

A Department of Health spokesman said: "There are over 600 NHS organisations in England but this survey only focuses on 40 (6.6%) of these, with data taken from local press coverage.

"Forecast information indicates the NHS achieved overall financial balance last year and the vast majority of NHS organisations have returned financially balanced plans for this year, but it is far too early to be speculating on forecast year end figures.

"The NHS across the board continues to receive unprecedented levels of investment.

"From this year the NHS has been and will be given three-year budgets so that they can plan services with certainty to increase capacity over the long term."

Official government figures on trust spending will be published this autumn.

The trusts highlighted by the Tories as facing debts are:

• South Manchester University Hospital
• East Somerset
• Scarborough
• North Bristol
• Royal United, Bath
• Oxford Radcliffe Hospitals
• North Cheshire Hospitals
• Airedale
• Mid Yorkshire Hospitals
• Worcestershire Acute Hospitals
• North Cumbria Acute Hospitals
• The United Lincolnshire Hospitals
• Bolton Hospitals
• Epsom and St. Helier
• St. George's, Tooting
• Whittington Hospital
• Chelsea and Westminster
• West Middlesex
• Newham Healthcare
• Whipps Cross University Hospital
• Barnet and Chase Farm
• Queen Mary's, Sidcup
• East Sussex County Healthcare