NHS trusts in England collectively ran a deficit of £780 million in 2024/25, according to analysis by the King's Fund. The think tank described the financial situation as 'perilous', forcing health leaders to make 'increasingly difficult choices' that directly impact patient care.
Acute hospital trusts, which account for three-quarters of trust spending, were particularly affected, with 69 per cent reporting a deficit. The percentage of trusts in deficit varied from 10 per cent of ambulance trusts to 44 per cent of community trusts.
Danielle Jefferies, senior analyst at the King's Fund, said that while budgets for the broader NHS and Department of Health and Social Care 'may appear manageable', the reality for individual organisations is stark. She warned that further cuts to frontline staff or investment in services could become more common, worrying patients about a decline in care quality.
The King's Fund noted that NHS trusts have been in deficit for eight of the last ten years, with exceptions only during the pandemic when additional funding was provided. The spring statement by Chancellor Rachel Reeves did not include health-specific announcements, and the think tank argued that the current spending envelope does not match the government's ambitions for the NHS.
Jefferies called for a greater focus on prevention, such as strengthening restrictions on junk food advertising and mandatory calorie reduction targets, to sustainably manage rising healthcare costs. She warned that without action, the NHS will continue to struggle with deficits while trying to meet population care needs.
