NHS Tayside must save £214m over next five years

NHS Tayside chief executive Lesley McLay said there was "no intention whatsoever" of cutting jobs

NHS Tayside must make £214m of savings over the next five years to break even and pay back its debts, MSPs were told.

Chief executive Lesley McLay said there was "no intention whatsoever" of cutting jobs and defended her own 2.3% performance-related bonus last year.

Ms McLay said she was "fully aware" of the health board's financial challenges.

The board's senior managers were being questioned in Dundee over a recent Audit Scotland report.

The spending watchdog said NHS Tayside has set an "unprecedented" savings target of £58.4m for 2016/17 and faces a budget deficit of more than £11.6m this year.

Audit Scotland warned there was a risk it would need a Scottish government bailout, despite receiving more than £24.3m from ministers since 2012.

Ms McLay told the Scottish Parliament's Public Audit and Post Legislative Scrutiny Committee that the board had an overall five-year financial plan.

Alex Neil MSP said the board's approach was "wholly inadequate"

Former health secretary Alex Neil MSP asked: "Over that five year period, have you got each of the savings costed by line item to add up to £214m?"

Ms McLay said that in addition to the overall plan there would be individual one year plans published over the next five years.

Mr Neil said: "That's a wholly inadequate approach.

"Given the situation within Tayside health board, I would suggest you need not a high-level finger in the air estimate.

"You need a detailed five-year business plan which shows clearly how you're going to pay off your debt without a dramatic reduction in the way you operate services."

Ms McLay told committee convener Jenny Marra MSP that any reduction in staff numbers would be through "natural attrition" with employees retiring or leaving the service.

'Financial challenges'

She said: "There is no intention whatsoever, there never has been nor will be, in terms of cutting jobs.

"In terms of cuts to services, we're not cutting services but there are opportunities where we can deliver them differently."

The committee was told 66 NHS Tayside senior management staff, including Ms McLay and finance director Lindsay Bedford, received performance-related bonuses totalling £87,000 last year.

Ms Marra asked: "Given the state of finances at NHS Tayside, do you think these awards are merited?"

Ms McLay said: "Yes, I do. Clearly, I am fully aware of the financial challenges NHS Tayside has.

"I believe my performance was awarded on the work that I was doing as the leader of the organisation and work about building sustainable plans that were gong to bring the board back into balance."

The meeting in Dundee City Chambers was the first time the committee has met outside of Edinburgh and also heard from local patients' groups and representatives of NHS Tayside workers.

It is the first time the committee has met outside of Edinburgh