1. Financial Resilience
Andy McKeon,
Managing Director
Audit Commission

2. NHS AGGREGATE POSITION – 2011/12
• Overall surplus
• £1.5 billion spent non-recurrently by Commissioners
• Trust cost improvement programmes 4.5 per cent
• QIPP savings delivered – and promising future
forecasts
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3. 3

4. But
• 31 trusts in deficit in 2011/12, compared with 26
in 2010/11
• 25 per cent of Foundation Trusts in deficit in
first quarter of 2012/13 compared with 10 per
cent in last quarter of 2011/12
• Geographical focus
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5. Picture in Social Services
• Adult social care spending reduced by 3.9 per
cent in real terms in 2011/12
• Planned reduction of 3.4 per cent in 2012/13
• Auditors considered 13 per cent (c. 20) of Single
Tier and County Councils not well placed
financially in the short or medium term.
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6. Year-to-date growth in activity indicators – England, by volume
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7. QIPP and Transformational Savings
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8. Prediction
• NHS will be financial resilient
• QIPP savings total will be delivered
• But there will be little transformational change
• Activity growth still the achilles heel
• Experience will depend on where you live
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