The Welsh Government has rejected Powys health bosses plans for a £25million deficit budget for this year.

At a meeting of Powys Teaching Health Board (PTHB) on Wednesday, 22 May board members were told that following feedback on their initial budget plan from the Welsh Government, the organisation would need to revise and resubmit a proposal by the end of this month.

In March, the board agreed its annual delivery plan for 2024/2025 which includes a budget deficit of £24.9 million and a savings target of £7.9 million.

Nine parts of the plan had been rated as “low” confidence of delivery and the Welsh Government had said that the plan was not “supportable or acceptable” in its current form.

PTHB chief executive Hayley Thomas said: “The Welsh Government welcome the ambition set in our plan regarding the shift to a preventative approach – but as it stands needs to be looked at again.

“We need to deliver an acceptable plan that provides a material improvement in the significant deficit position that we are currently holding.”

Ms Thomas added that other Welsh health boards were in similar positions and holding talks with the government.

She added that PTHB was expected to submit a revised proposal by 31 May.

Over the next few days, the board would need to discuss and agree “substantial actions” needed to respond to the Welsh Government’s feedback.

Planning, performance, and commissioning director Stephen Powell said that the original delivery plan would continue as a “baseline document” and revisions would be shown as a “change variation” to it.

Ms Thomas said: “This isn’t unusual at the start of the (financial) year.

“This is quarter one and therefore some of these things need time and consideration to actually build confidence.

“As we proceed, I expect the confidence to increase as further work and analysis and milestones are met and confirmed.”

Board member Ian Phillips said: “Our rejected plan was our best offer.

“To get that balance right to meet targets, maintain quality and ensure safety, our next best effort is going to be a considerably tougher ask for us.”

He believed the health board is in “fire fighting mode” which is not “great” for implementing long term changes.

Last autumn the Welsh Government made drastic changes to their 2023/2024 budget to find money for a major cash injection of over £460 million to bolster NHS services nationwide.