A NORTH Yorkshire health trust's cash crisis is set to rocket.

Scarborough and North East Yorkshire Trust, which covers hospitals at Whitby, Malton, Scarborough and Bridlington, had a £3.5m shortfall at the end of the financial year in March says Gerry Nolan, director of finance, in a report to the board.

A break-even situation was created by transferring capital, a loan from the NHS Regional office, and using other income.

However, Mr Nolan said the deficit will rise by a further £2m when funding shortfalls, cost pressures and extra work is taken into account.

* The trust is being recommended to carry out capital schemes costing £1.5m. The spending will go on medical and surgical equipment, a high-tech scanner, electronic equipment, refurbishing an operating theatre, replacing incubators in the maternity unit at Scarborough General, and an equipment library for the nursing unit.