East Sussex NHS trust to have more than £200m debt written off

East Sussex Hospitals NHS Trust is to have £232,653,000 written off and Brighton and Sussex University Hospitals NHS Trust will have £293,485,000 of debt written off, according to the MP.

Maria Caulfield MP, who in March announced she was returning to the front line in the NHS to support the fight against the coronavirus, said she was delighted at the news.

She added: “This will help put NHS hospitals, mental health and community services across the Lewes constituency in a stronger position not only to deal with coronavirus in the short term, but on a stable footing in the long term as well.”

The government is committed to doing whatever it takes to tackle coronavirus, according to Ms Caulfield.

She said: “This announcement will the NHS the financial certainty it needs to respond to the pandemic and help save lives.”

This package is launched in combination with a simpler internal payment system to help NHS trusts in dealing with the coronavirus response, which was agreed with NHS England last week.

Ms Caulfield said the change will mean hospitals will get all the necessary funding to carry out their emergency response, despite many hospitals cancelling or limiting their usual services such as elective surgery or walk-in clinics due to the virus.

Health Secretary Matt Hancock added: “As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.

“This £13.4 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.”

“The changes to the funding model will give the NHS immediate financial certainty to plan and deliver their emergency response.”

A spokesman for East Sussex Healthcare NHS Trust said it welcomed the government’s announcement.

He added: “In our case, historic debt to the value of £232.6 million will be converted into capital.

“This creates a more sustainable financial base for the future and represents a significant annual interest saving.

“We are aiming to break even in the financial year 2019/20 and plan to maintain a sustainable financial position going forward.”

The announcement is part of a package of major reforms to the NHS financial system, according to Ms Caulfield.

She said trusts across the South East will see a total of £1,380,945,000 of debt written off in the move.

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