Further savings and cuts may need to be found as Powys Teaching Health Board grapple with a deficit budget of just under £23 million – which could balloon to around £35 million.

The dire financial situation facing the health board was discussed at a board meeting on Wednesday, 25 September.

The health board had initially planned to post a £24.9 million deficit budget this year, but in May they were asked by the Welsh Government to look at the figures again.

This saw the figure brought down to £22.9 million, which has yet to be agreed by the Welsh Government.

Five months into the financial year the report explained that the health board is £3.386 million adrift of where they should be.

The danger is that this could balloon to an over £12 million overspend on top of the planned deficit.

Director of finance, Pete Hopgood said: “There is a continued deterioration in our performance, this is very worrying and challenging, and we are asking budget holders to do what they can to reduce our run rate.”

Of the £9.9 million savings target this year Mr Hopgood told the board that £8.5 million is now forecast to be delivered.