NHS Grampian owes £92.2m to Scottish Government

A NHS Scotland health board owes the Scottish Government £92.2m after it had to borrow millions to plug a financial black hole.

NHS Grampian took loans of £67.5m from the Government to balance its books ahead of a board meeting on Thursday, STV News can reveal.

It racked up the £67.5m financial blackhole over the last year – the largest overspend of any NHS health board across Scotland.

The Scottish Government has bailed NHS Grampian out, but the health board must make huge savings in the coming year.

“The impact of this is a major risk for the National Health and Social Care Health budget and as a result the Scottish Government officials are concerned”
NHS Grampian report

Government officials are “concerned” about NHS Grampian’s financial position.

“The impact of this is a major risk for the National Health and Social Care Health budget and as a result the Scottish Government officials are concerned,” health board papers state.

“This brokerage will require to be repaid to the Scottish Government once the Board returns to financial balance, [and it] takes total brokerage repayable to the Scottish Government to £92.2m.”

The revelation comes just days before NHS Grampian health executives are scheduled to discuss the worsening financial crisis and approve a £39m savings plan.

These include job cuts across most departments, hospital drug savings, energy cost reductions, closing or selling off properties and more.

It’s all part of the health board’s effort to reduce its overspending to £45m or less by this time next year after the Scottish Government warned bosses that was the maximum level allowed.

Current forecasts expect NHS Grampian to exceed the maximum deficit by £23m.

The board said many things are contributing to its current financial crisis.

The cost of providing healthcare, staffing, changes to employer National Insurance contributions, energy bills, food and maintenance costs have all increased.

NHS Grampian has also had to pay an extra £24.7m to the three Health and Social Care Partnerships for Grampian – all of which overspent their budgets in 2024/25.

The health board emphasised that it does not receive additional money to support those overspends.

The board has also seen a 9% increase in the number of over 65s in the last five years – the highest percentage increase in the older population across Scotland.

“This increase is driving the system pressures within our Health Board and our Health and Social Care Partnerships,” a spokesperson for NHS Grampian said.

Meanwhile, the overall population size has increased while the working-age population has reduced by 1%.

The savings plan and general financial situation will be discussed in more detail at the next NHS Grampian health board meeting on Thursday.

“We will continue to work with Scottish Government, our staff, stakeholders, and the people to Grampian, to ensure NHS resources are used appropriately and savings are realised wherever possible,” the health board said.