Government writes off £268m of debt for Peterborough health trust

The Department of Health said £13.4 billion of hospital debt will be “scrapped” in England, £1.7 billion of which will be from 12 NHS trusts in the East of England.

This includes the North West Anglia NHS Foundation Trust which runs Peterborough City, Stamford and Rutland and Hinchingbrooke hospitals where more than £268 million of debt has been written off.

This write-off includes more than £212 million of revenue debt (recurring expenses) and more than £56 million of capital debt (fixed assets).

The Cambridge University Hospitals NHS Foundation Trust, which runs Addenbrooke’s Hospital and The Rosie Hospital, has had more than £340 million written off.

The health secretary Matt Hancock said: “As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.

“I’m pleased to confirm the value of this package for the East of England. This £1.7 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.”

Peterborough City Hospital opened in 2010 with huge debts due to a costly Private Finance Initiative (PFI) deal.

The North West Anglia NHS Foundation Trust was in deficit by £61.5 million in 2018/19.

NHS chief executive Sir Simon Stevens said: “We’ve advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position – not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan.”

The Department of Health said: “The changes will provide much needed financial support during this unprecedented viral pandemic, as well as laying secure foundations for the longer-term commitments set out last year to support the NHS to become more financially sustainable.”