Oversight at NHS Ayrshire and Arran increased amid financial issues

Government oversight at NHS Ayrshire and Arran has been increased, the Health Secretary announced, after a report in November found “unprecedented” financial issues.

The board has been escalated to stage four of the Scottish Government’s oversight framework – the second highest level – to allow for “enhance scrutiny and dedicated support”, Neil Gray said on Friday.

In November, Audit Scotland found the board needed a £51.4 million loan in 2024-25 to break even, leaving it with almost £130 million in outstanding loans.

Announcing the move, Mr Gray said: “Getting finances back on track is essential for patients and staff alike – it means NHS Ayrshire and Arran can plan effectively for the future and continue investing in the services local people rely on.

“The 2026-27 draft Scottish Budget provides record funding for health boards, including a real terms uplift of 1.8%.

“NHS Ayrshire and Arran will receive nearly £1.1 billion in 2026-27, which equates to increased investment of £88.2 million since 2025-26.

“Escalation to stage four brings enhanced scrutiny and dedicated support from the Scottish Government.

“I have confidence in interim chief executive Gordon James and his leadership team, and we will work closely with them over the coming months to return the health board to a sustainable financial footing.”

NHS Ayrshire and Arran interim chief executive Professor Gordon James said the board was “committed to working openly and constructively with the Assurance Board and Scottish Government”.

In a statement, he said: “We acknowledge the Scottish Government’s decision to escalate NHS Ayrshire & Arran to level four of the NHS Scotland Support and Intervention Framework.

“We recognise the seriousness of the financial challenges we face and welcome the enhanced external support this brings.

“Escalation to level four is used where there are major risks to delivery and where tailored assistance is required to strengthen areas such as financial management.

“We are committed to working openly and constructively with the Assurance Board and Scottish Government colleagues to stabilise our financial position, improve financial governance and performance, and accelerate the actions already under way to return the organisation to a sustainable footing.

“Throughout this work, the safety, dignity and experience of our patients remain our highest priority. Our staff continue to deliver high quality care every day, and we will support them fully as we progress this improvement programme.”

Scottish Lib Dem MSP Jamie Greene – who represents the West Scotland region – said the Government was “making life extremely difficult for patients and staff”.

He said: “John Swinney’s government has no long-term strategy or vision for our NHS, which is why yet another health board has been pushed to the point of crisis.”