A £700,000 extra cash boost from the Government has eased Burnley Health Trust's overspending headache.

But finance director David Meakin today warned trust directors that the hospitals and community care group will have to slim down annual budgets by £1.5 million to wipe out recurring overspending.

Mr Meakin said the extra cash award to help the trust cope with winter pressures would significantly reduce the expected shortfall this year. He told directors the trust was heading for overspending of between £400,000 to £850,000 in best and worst case scenarios for the year to March 31.

Mr Meakin said the major target was to keep overspending below £500,000, avoiding the need to set up a formal recovery plan.

But he warned that even this target could not be met without "severe financial controls".

In his report to the board the finance chief.

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