Kennet and North Wiltshire Primary Care Trust will be working hard this year to balance its books. But it could be a difficult task in this financial year, Kennet and North Wiltshire PCT is currently forecasting an overspend of £8.7 million.

The trust underspent in 2002/3, but the following financial year overspent by £2.1 million just over one per cent of its total budget.

"Like any organisation, it is important that the NHS locally can live within its means and therefore the PCTs have been working to make the necessary recovery savings during 2004/05, whilst minimising the impact on patient services," said a spokesman for Avon, Gloucestershire and Wiltshire Strategic Health Authority.

"To help them do this, some of the 2002/03 underspends were carried forward to 2004/05."

The PCT received a nine per cent increase in funding for 2004/05 and the three Wiltshire PCTs also benefited directly from a further £9.4 million special funding provided to the Royal United Hospital Bath.

"Collectively, the three PCTs are receiving £8 million more a year than their fair share according to the national formula," the spokesman said.

The national funding formula takes into account the higher cost of providing services in rural areas, the relatively higher cost of salaries and the presence of a military population.

"We will spend £2.3 billion on NHS services in Avon, Gloucestershire and Wiltshire in 2004/05 and we expect that the NHS will break even at year end," the spokesman said.

"If AGW does not achieve overall financial balance in 2004/05 it will lose the planned special assistance support of £20 million for 2005/06 and £11 million benefit planned for 2007/08."