Campaigners welcome Hospital Trust debts being written off as part of battle against coronavirus

Health Secretary Matt Hancock announced on Thursday that he was writing off £13.4 billion of historic NHS debt across the nation in a bid to help trusts financially as they look to tackle the coronavirus pandemic.

Bosses at United Lincolnshire Hospitals Trust (ULHT), which runs hospitals in Lincoln, Boston and Grantham, revealed the trust’s £342 milllion of historic loans will be converted to Public Dividend Capital.

It is hoped the move will save £2.5 million for the trust in 2020/21, which bosses say will help it “return to a long-term financially sustainable position.”

ULHT Director of Finance and Digital Paul Matthew said: “This is fantastic news for the trust and the people of Lincolnshire, as the burden of historic debt is removed.

“The trust can now focus on the future and delivery of its Integrated Improvement Plan.”

The trust has been in special measures since 2017 and at the end of 2019 reported a deficit of £34.893 million.

It had agreed to have a deficit of £70.3 million by the end of the financial year with the hope of exiting the issue with the agreement of regulators.

The current chief executive Andrew Morgan, who took over in 2019, is hoping to have achieved “outstanding” status from the Care Quality Commission by 2026.

Announcing the government’s move, Mr Hancock said: “This landmark step will not only put the NHS in a stronger position to be able to respond to this global coronavirus pandemic.

“But it will ensure that our NHS has stronger foundation for the future too.”

However, Alison Marriott, of SoS Pilgrim - Call to Action, in Boston, said it should not have taken so long for the debt to be lifted.

She said: "We are 110 per cent behind the staff and this must be very welcome news to the Trust at a difficult time.

"But we have always maintained that this wasn’t a debt, it was underfunding.

"So while it is good news, it really should not have taken so long for it to be lifted, and cuts should not have been made or planned.

"The money wasted on trying to resolve the debt, plus the suffering caused, could have been avoided.

"And will the Government now fully-fund the Pilgrim and restore all services which have been cut, as soon as the COVID-19 pandemic has settled?"

MP for Boston and Skegness Matt Warman commented: "“I am pleased that long-standing plans to wipe clean the debts of NHS Trusts have been delivered.

"ULHT can now look to overcome the coronavirus pandemic without worrying about past finances, and ensure stronger foundations for the future.”