THE body in charge of East Lancashire hospitals is planning to spend almost £20 million than it gets in revenue funding by the end of the financial year.

East Lancashire Hospitals NHS Trust bosses say they are anticipating a revenue plan deficit of £19.1 million by the end of 2018-19, compared to £12m in 2017-18.

Despite this, the board has approved an ambitious spending plan for the financial year which will see £35.6 million invested over the coming months.

The trust is expected to fork out £19.2 million on its estate and buildings, with a further £7.5m earmarked for information management and technology spending.

Investment in medical equipment is forecast to cost £2.4m while £3.8m will be spent on repayment of financing.

The remaining £2.7m of budgeted capital spending is listed as 'other'.

The spending will be funded by £13.3m of internally generated cash as well as £17m of new public divident capital and a £5m loan.

The remainder of the cash will be provided by £300,000 in donations.

In a report due to go before the trust board at a meeting on Wednesday, ELHT director of finance, Jonathan Wood, said: "The trust expects to receive income of £477.9m, against which the trust will plan to spend £470.2m after delivering a cost improvement of £18m (4 per cent), thereby generating an Earnings Before Tax and Amortisation (EBITDA) surplus of £7.7m.

"The trust will incur further expenditure of £12.8m in capital charges and £14m in respect of net financing costs.

"The Trust is therefore anticipating a deficit of £19.1m.

"The gap between income and expenditure has risen because of four main

issues, general inflationary pressures greater than central funding assumptions, increasing costs of complexity in meeting the needs of our community, excessive pay growth and recurrent pressures brought forward from 2017-18.

"Despite the challenging revenue position outlined above the trust board has

approved an ambitious capital plan for 2018-19 with reflect investment of £35.6 million.

"The trust reported a surplus of £2.9m in 2017-18 after receiving £14.9m from the finance and sustainability fund.

"Capital schemes relating to the Trust estate and buildings represent the largest area of expenditure for 2018-19 at £19.2million.

"The recently approved £18.5million Phase 8 scheme at Burnley General Teaching Hospital will be funded by Public Dividend Capital.

"The trust anticipates spending £12.0 million in 2018-19 with the balance being sent in 2018-19.

"This continues to be is a very challenging financial planning environment for the NHS and the local health economy.

"The financial plan approved by the board requires the trust provide safe, personal and effective services, to maintain good financial control and to deliver an challenging £18 million efficiency plan."