Shrewsbury and Telford NHS Trust, in charge of Shropshire's two main hospitals, is more than �19m in debt.

Accountants KPMG said the trust may not break even this year and highlighted faults in hospital accounting and controls on spending.

The trust said it welcomed the report and added a detailed recovery plan was already being drawn up.

Historic debt

According to the report: "Prior to the additional financial issues which emerged in April 2005, the trust has consistently forecast a breakeven position.

"However, since then it looks as if it is unlikely to reach this target in the forthcoming financial year unless the recommended action plan is quickly implemented."

KPMG also recommend short-term borrowing from local primary care trusts as one of the solutions.

The trust ran up a �10.1m deficit in 2004/05 on top of a �9m historic debt.

The trust said the figure was unexpected but a new ward, a new unit and �400,000 for cancer drugs had contributed to it.