New posts are being restricted at the James Cook hospital

The cash crisis at the South Tees NHS Trust led to a freeze on recruitment at the James Cook site in Middlesbrough.

The trust says it hopes the freeze on new posts and restrictions on the use of agency staff, will save �9m from its �180m staffing costs.

Staff are due to find out whether the measures are doing enough to cut costs.

Neighbouring North Tees and Hartlepool NHS Trust has already halted recruitment at its flagship sites in Stockton and Hartlepool, amid debts of �4m.

Enforced redundancies

Union officials have expressed concern and say they are monitoring the situation and any effects on services and existing jobs.

The South Tees trust says it hopes the cost reduction measures will mean enforced redundancies can be avoided. But bosses say they are unable to rule anything out.

A spokeswoman for the public service union Unison, said: "This is something that has to be monitored really carefully and we need to see an end to this moratorium as soon as possible.

"We could quite easily get to staffing levels that are incredibly stretched. So we will be watching the situation very carefully."

The cash crisis is also due to be discussed at a meeting of the County Durham and Tees Valley Strategic Health Authority Board on Wednesday.