Trust officials are working to save �10m expenditure

Last week a last-minute deal was struck by health chiefs at the debt-ridden Scarborough and North East Yorkshire NHS Trust, averting big job cuts.

The trust, which runs hospitals in Scarborough and Bridlington, had considered cutting 600 jobs.

At a public meeting on Tuesday the trust said it could now save �10m with minimum job losses.

Staff were told last Thursday that severe losses had been prevented and only 50 jobs would be cut.

Trust chief executive Iain McInnes said savings of �8m had already been identified, and efforts were now being made to find a further �2m in savings.

He said: "These plans offer the best possible solution to a long-term problem.

"We will look to minimise the impact on staff and patients, and although we can't entirely rule out making compulsory redundancies, every effort will be made to ensure that these are minimised or avoided."