NHS Forth Valley warns all departments to make 2% savings amid £38m blackhole

NHS Forth Valley has warned all departments to make savings as the health board attempts to fill a £38m blackhole.

The board said “immediate action” is now needed, and directorates have been asked to find an additional 2% worth of operational savings.

“It is clear that immediate action is required now to accelerate the pace of savings delivery, together with further measures to reduce costs in year as far as possible,” the latest NHS Forth Valley board papers stated.

“To this end, all Directorates will be tasked with identifying further savings plans equivalent to 2% of operational budgets.”

The health board started the financial year in March facing down a £38m budget gap.

They approved a range of cost improvement plans and efficiency initiatives to bridge that gap.

Those plans were acknowledged and given the green light by the Scottish Government.

But now the health board is reporting that more needs to be done to meet those savings targets.

NHS Forth Valley’s director of finance reported that all areas of the savings plan, except for one, are behind schedule to varying degrees.

Some areas are reporting significant overspends.

As of June, just three months into the financial year, NHS Forth Valley’s acute services reported a £7.5m overspend.

A spokesperson for the health board said it is not the only board that is reporting a funding gap for the current year.

“The £38m funding gap highlighted in our latest Board papers was confirmed at the start of this financial year and hasn’t changed or increased since then,” the spokesperson said.

“A savings plan was developed in March 2025 to address this, and significant progress has been made in reducing costs over the last few months, particularly in relation to temporary staffing and medicines spend.

“We monitor our financial position on an ongoing basis and take additional action, where required, to help ensure the plans in place deliver the savings and reduction in costs required.

“There are no plans at this stage to cut or reduce services; however, all departments, particularly those which are currently reporting an overspend, are being asked to identify further opportunities to reduce costs and increase efficiency to remain within their allocated budgets.

“We are confident that the continued efforts and actions being taken across the organisation over the coming months will reduce the current overspend and improve our overall financial position.”