Audit concern over £50m savings

The health service in Cambs, Norfolk and Suffolk needs to save £50m in seven months if it is to meet government targets, auditors have warned.

But the Norfolk, Suffolk and Cambs Strategic Health Authority (SHA) says that it has made huge progress in finding the savings needed.

Auditors reviewing the accounts in July say the SHA was heading towards a £92m deficit in 2005/2006.

The Annual Audit Letter goes before the SHA's public meeting on Wednesday.

In a statement an SHA spokeswoman said savings of just £30m, compared to £50m, were now needed, thanks partly to savings made by local NHS Trusts.

She added: "But there is clearly much further work for the NHS locally in developing plans that modernise services and make them affordable."

If the SHA fails to meet government targets it could face financial penalties.