Powys Health spending already way over budget

By Elgan Hearn, Local Democracy Reporter

Do finance chiefs have enough resources to keep on top of this year’s Powys Teaching Health Board (PTHB) budget, a board member has asked.

At this week’s PTHB board meeting, members were given a budget update three months into the 2026/2027 financial year which shows that they are currently £1.827 million over an expected overspent position.

This means that they are £12.991 million over the £117.067 million total received funding at this point of the year, having spent £130.057 million.

PTHB forecasted that they should have spent £128.335 million, which is £11.163 million over their funding.

This financial year’s annual plan, which has still not been signed off by the Welsh Government, aims to deliver £22.889 million worth of savings with the aim of ending the year with a £44.652 million deficit on a total budget of £468 million.

Acting Finance Director, Hywel Pullen, did have some good news for the board and explained that the deficit had not worsened from month two to month three.

Mr Pullen said: “In month two we had also been a £1.82 million deficit, so in the month of June we have broken even on our budget.

“At month three we’ve identified £21.3 million worth of savings that we can assure as amber or green, that’s a movement of £5 million from the end of May when it had been £16.3million.

“During June we’ve been able to increase the number of saving schemes identified, a chunk of those have also moved to green with confidence of their delivery.”

In recent weeks, Chief Executive Hayley Thomas has stepped away from the role so that she can be treated and recover from a cancer diagnosis.

This means that the Finance Director, Pete Hopgood, has become Acting Chief Executive with his finance deputy, Mr Pullen becoming Acting Finance Director.

Independent member Ronnie Alexander said: “Against a background that Pete is now Acting Chief Executive and you’re Acting Director of Finance, given the assertive nature that will be required to achieve costs savings do you need extra support in the finance directorate which would aid you in achieving those savings?”

Mr Pullen said: “The executive team as a whole are united in trying to find the savings and achieve the plan we’ve developed, so it’s incumbent on all of us.

“We do recognise there is a vacancy for a senior person in our team, we have an advert to attract someone to come in on secondment to bolster the financial capacity we have.”

Mr Hopgood added that PTHB now have a financial recovery board in place and is the “number one mechanism” to focus the organisation on delivering on “our plan and targets”.

“It’s an area of determination for us all,” he stressed.

PTHB Chairman, Dr Carl Cooper, said: “We do need to rally around a shared commitment to delivering the plan that we agreed, albeit not an accepted plan with Welsh Government.

“The plan stabilises our financial position, it doesn’t improve it, even with delivering we have a significant deficit position.

“In delivering the plan we will have again achieved a set of rather eye-watering savings.”

The board then voted to support the report.