Health secretary warns NHS Grampian must get financial crisis under control

The health secretary has warned that NHS Grampian must get its financial crisis under control as soon as possible.

NHS Grampian currently owes the Scottish Government £92.2m after it borrowed millions to plug a financial black hole earlier this week.

The health board took loans of £67.5m from the Government to balance its books ahead of a board meeting on Thursday – on top of the loan it took from the Government in 2024.

It racked up a £67.5m financial black hole over the last year—the largest overspend of any health board in Scotland.

The Scottish Government confirmed that it would once again bail NHS Grampian out, but the health secretary told STV News on Wednesday that the board must get its finances under control.

“We will continue to support them, but we also expect them to work to ensure they move to a more sustainable [financial] basis as soon as possible,” Gray said.

“We’ve provided significant support to the board over recent years, and that continues this year.

“We don’t expect their financial situation to be resolved in one financial year – we know that’s going to continue, but we do expect to see a recovery plan coming through.”

Gray refused to say he was concerned about the situation but said it is “obviously one the government has been aware of”.

“It’s something we’re continuing to work with them on,” Gray said.

The Government has a financial support team working with NHS Grampian, and Gray emphasised that the new 2025 budget provides “a record level of funding for NHS boards across Scotland”.

“I recognise that even with that, there are still pressures in terms of being able to deliver services, but we’ll work with NHS Grampian to make sure there continues to be a situation where we’re seeing improving performance and better financial performance as well”, the health secretary said.

Despite the ongoing financial crisis – and the impending £39m savings plan facing the board – Gray said he still had confidence in NHS Grampian health chiefs.

He acknowledged that the interim chief executive Adam Coldwells’ retirement will leave the board searching for a new leader, but he said whoever takes the wheel will continue to keep financial improvement – and service delivery – as a top priority.

Gray refused to take a hard line on finances or rule out providing more money for NHS Grampian in the future, but he said the health board is expected to get into a more stable financial position “as soon as possible.”

“We’ll work with them; it’s not a punitive process,” he said.

“It’s a process of support to make sure they can see clear a trajectory for financial recovery, and critically that they prioritise the services they’re providing – they need to see continuous improvement there too.”