SOME progress is being seen in NHS Dumfries and Galloway’s efforts to contain a £28 million in-year deficit.
A financial update covering the end of December shows the Board’s overspend at £19.1 million, reflecting steady progress in slowing expenditure despite continued pressure across frontline services. Board members were told the organisation remains on track to stay within the funding limits agreed with the Scottish Government.
Newly-appointed Interim Director of Finance Tim Bennett said the figures point to cautious progress in very challenging circumstances.
Mr Bennett said: “This remains an extremely difficult position, but the direction of travel is positive. The gap is narrowing, and that reflects the hard work being done right across NHS Dumfries and Galloway.”
The approved financial plan for 2025/26 forecasts an in-year deficit of £28 million, supported by non-recurring funding at year end. Based on current trends, the Board is now forecasting an outturn closer to £26 million, reducing the risk of breaching the agreed spending limit.
The report makes clear that significant pressures remain. Acute services continue to face high demand, while rising medicines costs, external healthcare contracts and workforce pressures are all contributing to overspends. In some areas, reliance on temporary staffing remains necessary to maintain safe services during peak periods.
Despite these challenges, the update highlights strong progress in delivering savings. Of the £12.8 million in recurring savings required this year, £11.3 million has already been secured through initiatives focused on delivering the right care in the right place, improving prescribing practice, and reducing avoidable costs in planned care.
NHS Dumfries and Galloway continues to operate under Stage 3 of the NHS Scotland Support and Intervention Framework, with financial recovery subject to close Scottish Government scrutiny. Work is already underway on planning for 2026/27, with an expectation that deficit support funding will reduce over time.
Mr Bennett said: “There are no easy solutions, and some decisions ahead will be difficult. But our priority remains clear – to manage public money responsibly while providing safe, effective services for our communities.”