The trust has one of the biggest debts in the country

Surrey and Sussex Healthcare NHS Trust said on Tuesday it had a current deficit of �51.3m, up by nearly �20m from the figure given two months ago.

However, the trust said it had been continually reducing its monthly deficit since the beginning of 2006.

It operates Crawley Hospital and the East Surrey Hospital in Redhill.

Health Secretary Patricia Hewitt said this month she was working towards "restoring the NHS to financial balance over the next financial year".

We will eventually require a permanent solution to our cash position Malcolm Dennett, Surrey and Sussex Healthcare NHS Trust

But Malcolm Dennett, director of finance for Surrey and Sussex, has now said: "The trust is still forecasting to be in deficit in the year 2006-2007."

Mr Dennett's financial report was discussed by the trust's board on Tuesday.

Despite the gloomy warning of continuing debt, he said there were also positive developments.

"The monthly deficit... continues at around �2m each month, compared with �3m at the start of the year," said Mr Dennett.

"The cash position has improved significantly as a direct result of the facilities arranged with the NHS Bank."

Mr Dennett said �10m savings had been made by reducing the number of agency staff used by the trust, while suppliers were now being paid within 30 days compared to almost 90 days at the end of 2005.

A turnaround team brought in to try to haul the trust into a break-even position is due to reveal some of its plans next Tuesday.