HEALTH bosses battling to claw back debt are likely to end the latest finance year just under £35 million in the red, according to latest figures.

The heavily in debt North Yorkshire and York Primary Care Trust (PCT) has released its latest report on how much money it has managed to save over the past few weeks.

The organisation must make multi-million pound savings in its spending this year in order to balance the books by April 2008.

Last year, it put in place a series of measures to save as much money as possible before the finance year ended, including suspending a wide range of hospital procedures - some of which were reintroduced in April.

GPs who felt their patients urgently needed any of these procedures were asked to send them to a special prior approval panel of PCT staff - which had the power to either reject or approve cases based on how "exceptional" they were.

The Press campaigned strongly against this panel in our Let Your Doctor Decide campaign, after doctors said it would seriously impact on patient care and could even put lives at risk.

The PCT hoped to save £10 million by introducing its short-term measures.

Chiefs were aiming to end the year with an overall debt of £35 million, and the latest figures indicate it is likely to have achieved this. Much of the money, £5.8 million, was saved when the PCT decided to postpone its decision to make staff redundant until this finance year. Currently 400 employees have been told they are "at risk" of losing their jobs.

PCT finance boss Nicholas Steele said in a report to board leaders - who meet on Tuesday - that the organisation's financial position had improved by nearly £2 million since its last meeting a month ago.

He said: "The interim year-end position is £34.8 million. Although there are still some variables which could alter this position it is anticipated they can be successfully managed and if anything the position could be improved before the accounts are submitted.

"Although there is clearly a long way to go until the PCT returns to financial balance, good progress has been made in the final quarter of 2006/7 and the PCT has every opportunity to make further significant improvements in 2007/8."