A HOSPITAL trust has been forced to undertake emergency cost-cutting after a multi-million pound pot of cash was withdrawn.

It now looks likely that the County Durham and Darlington Acute Hospitals NHS Trust will go £2.5m into debt after £6.5m in financial help was withdrawn by the region's Strategic Health Authority.

The trust learned in August that it would not get the cash windfall - and immediately reviewed all aspects of the business in an attempt to hit financial targets.

However, despite making savings of £4m, it seems there is no way the trust can avoid going into the red.

The financial problem was spelled out at meeting of the hospital trust board last week and is set against a background of overspending by half the trust's clinical departments.

The NHS has felt the pinch across the country with hospitals lurching into the red, including the James Cook University Hospital, in Middlesbrough, and Scarborough Hospital.

Yesterday, the County Durham and Darlington trust confirmed the funding shortfall would not mean a cut in the number of doctors and nurses.

Finance director Sue Jacques said: "The good news is that we have been more successful in keeping costs down than we expected.

"Also, we have been asked to see more patients than planned, which means the trust is receiving more income than planned. By continuing to keep the pressure on costs and by further efficiency savings, we hope to be able to work towards breaking even at the year end."

The board heard that, as of August 31, the trust had already overspent by almost £1m - a small portion of the budget.

A report to the decision-makers says budgeting by the clinical departments within the trust had been "disappointing" and 11 out of 23 departments had overspent.

David Flory, chief executive of the County Durham and Tees Valley Strategic Authority, said: "The SHA is working closely with local NHS organisations that are currently experiencing a problem.

"This is with the objective of raising financial stability as soon as possible.

"It is imperative that all trusts balance their books to support and deliver high-quality and stable services for patients across the region.

"If any trusts overspend, it takes away money that should be spent on patients in other areas."