Managers at the South Tees Hospitals NHS Trust were discussing a �3.5m overspend at a board meeting on Tuesday.

But the health union Unison says it wants assurances the cash crisis will not cost frontline jobs.

Latest figures from the trust, which runs the recently-opened James Cook University Hospital in Middlesbrough, show a �3.5m deficit at the end of October.

That figure could rise to almost �6m.

Brand new hospital

The hospital was built under the government's controversial Private Finance Initiative (PFI).

Dave Armstrong, regional officer for Unison, said: "Sometimes you get half way through a year and you see a loss situation and that somehow magically disappears at the end of the financial year.

"We hope this is one of those situations.

"There have not been any cost cuts or lay-offs so far and obviously we would like to see it stay that way.

"But it does seem strange that they have a brand new PFI hospital and yet they are running at a �3.5m deficit.

"We are keeping a close eye on the situation and are wanting to speak to senior people within the trust about what this all means for staffing."

Director of finance for South Tees Hospitals NHS Trust Steve Anderson said: "We are continuously monitoring the overspend.

"A recovery plan is in place and the trust is working very closely with its commissioners, the primary care trusts."