One in four NHS trusts had a deficit last year

One in four local NHS bodies ran up a deficit last year, forcing half of trusts to consider recruitment freezes this financial year.

To date they have mainly been confined to nursing and administration posts.

But Oxfordshire Mental Healthcare Trust said it was looking to cut seven consultant posts by March and seven junior doctor posts the following year.

The proposals still have to be put out to consultation and the trust said it hoped to make the savings by not filling empty posts, but it refused to rule out redundancies.

The move is likely to lead to service cuts. One inpatient ward has already been closed, while out-of-hours and occupational therapy services are likely to be changed.

This is the culmination of what we have been saying for many months, the NHS is facing severe deficit problems Jonathan Fielden, of the British Medical Association

The trust has balanced its books for the last five years but has been ordered to make �5.9m of savings by regional health bosses to help save NHS money across the whole of the region.

Several strategic health authorities across England have adopted similar tactics to help spread the burden of deficits.

But Julie Waldron, the trust's chief executive, said officials had lobbied hard against the savings.

"We continue to believe that there is every need for more investment, not reductions, in mental health funding and we shall ask primary care trusts to reconsider their decision."

But she said officials had accepted "albeit reluctantly" to start to look to make savings. She said the sale of the reduction meant "radical measures" were needed.

Cuts

Trusts in London and Portsmouth have already announced freezes in the recruitment of nurses and administration staff.

The NHS Confederation, which represents health service managers, has said NHS trusts are facing "tough decisions" and cuts which affect patient care would be a last resort.

But a spokeswoman said they could not comment on this individual case.

Jonathan Fielden, deputy chairman of the British Medical Association's consultants committee, said consultant post cuts have been unheard of for 20 years.

"This is the culmination of what we have been saying for many months, the NHS is facing severe deficit problems and it will hit services."

He said there needed to be a review of the impact of payment by results, a new funding system which is kicking in for most of the NHS next year, to relieve pressure on trusts.

The Department of Health said consultant numbers should not be cut.

"Any actions that trusts take to manage to reduce deficits should not lower the quality of care provided to patients.

"We have encouraged the NHS to use a range of strategies in order to reach financial balance without reducing staffing levels - for example by reducing spending on agency staff."