Holyrood gives NHS Lothian a surprise bumper budget

NHS LOTHIAN has been handed a bumper budget from the Scottish Government, which is millions of pounds more than was predicted. Holyrood announced yesterday that the organisation will be given £1.05 billion this year, a four per cent increase from 2010.

That marks the biggest increase of any other health board in Scotland, and goes some way towards addressing the funding disparity that exists between Glasgow and Edinburgh's health services.

Local NHS chiefs - who had been expecting, at best, a one per cent rise on last year's budget - are thrilled at the improvement, which will give them breathing space in their drive to reduce costs. However, it is understood the plans to get rid of 2000 posts by the end of this year will remain.

NHS Lothian director of finance Susan Goldsmith said: "We very much welcome the uplift in funding from the Scottish Government. This increase comes at a time when we are continuing to make efficiency savings and improve productivity while ensuring we provide high-quality clinical services.

"The funding, together with the savings we plan to deliver, will be used to help us meet the demands placed on services by demographic changes such as increased numbers of children and older people.

"Lothian's population is growing faster than that of any other health board. Our elderly population, in particular, is expected to increase at a rate three times the rest of Scotland."

Health chiefs have long complained about the "unfair" funding formula used by the Scottish Government.

The NHS Resource Allocation Committee (NRAC) left a 70 million black hole in Edinburgh's health budget, but with yesterday's increase that has been reduced to around 55m.

On top of the budget, extra cash has been provided to cope with the removal of prescription charges in April and the planned redesign of health and social care.

The money will help fund the new Sick Kids hospital and a new brain unit.

MSP Dr Ian McKee, a former city GP, said: "Despite cuts to Scotland's capital budget the SNP is determined make the NHS a priority and improve patient services.

"I'm delighted that a fair share of the revenue budget has been granted to NHS Lothian - it will be allocated the highest territorial board uplift."

Health secretary Nicola Sturgeon added: "The increase in revenue funding to NHS boards across Scotland clearly demonstrates the Scottish Government's commitment to protect spending on health.

"This funding will ensure that boards can continue to bring about real benefits to both patients and staff."