Scottish Government to inject £1.1bn into 'financially challenged' NHS Ayrshire and Arran

The Scottish Government will inject £1.1bn into NHS Ayrshire and Arran, as the health board continues to suffer financial difficulties.

The move is an increase of £88.2m on the year prior, with the health board being moved to stage four of the NHS Scotland Support and Intervention Framework.

The Holyrood-led framework is an “evidence-based approach to monitoring performance and managing risk across the NHS”.

If a health board is placed into stage four, it means that tailored support is not producing the required improvements within that specific area, with senior-level external support required.

NHS Ayrshire and Arran has been in financial turmoil over the last few years, with the Scottish Government giving the health board a last-minute loan to cover a deficit of more than £50m in 2024.

In August, chief executive Claire Burden stepped down to pursue further academic study while the health board faced a £33m black hole.

Health secretary Neil Gray said: “Getting finances back on track is essential for patients and staff alike – it means NHS Ayrshire and Arran can plan effectively for the future and continue investing in the services local people rely on.

“The 2026-27 draft Scottish Budget provides record funding for health boards, including a real terms uplift of 1.8%. NHS Ayrshire and Arran will receive nearly £1.1bn in 2026-27, which equates to increased investment of £88.2m since 2025-26.

“Escalation to stage four brings enhanced scrutiny and dedicated support from the Scottish Government. I have confidence in interim chief executive Gordon James and his leadership team, and we will work closely with them over the coming months to return the health board to a sustainable financial footing.”

Audit Scotland published a report in November regarding the health board’s finances, which concluded that “the severity of the financial challenge facing NHS Ayrshire and Arran is unprecedented”.

Professor Gordon James, Interim Chief Executive of NHS Ayrshire & Arran, added: “We acknowledge the Scottish Government’s decision to escalate NHS Ayrshire & Arran to Level 4 of the NHS Scotland Support and Intervention Framework. We recognise the seriousness of the financial challenges we face and welcome the enhanced external support this brings.

“Escalation to Level 4 is used where there are major risks to delivery and where tailored assistance is required to strengthen areas such as financial management.

“We are committed to working openly and constructively with the Assurance Board and Scottish Government colleagues to stabilise our financial position, improve financial governance and performance, and accelerate the actions already underway to return the organisation to a sustainable footing.

“Throughout this work, the safety, dignity and experience of our patients remain our highest priority. Our staff continue to deliver high‑quality care every day, and we will support them fully as we progress this improvement programme.”