Despite an increase in funding NHS Wiltshire has to make savings of £34.6m.

Its allocation of funding from the Government for 2011/12 is 2.2 per cent above the previous year but NHS Wiltshire is still paying off debt run up by its predecessor primary care trusts.

The PCT’s budget for 2011/12 is £656.2m. Inflation costs will amount to £17.2m.

The £34.6m savings include reducing excess stays in hospitals for patients, a reduction in beds at Green Lane Hospital, Devizes, and management costs.

By the end of this month the PCT will have repaid £48.5m of the £61.4m debt it inherited in 2007/8.

It has set itself a target of finishing 2001/12 with a surplus of £6.5m and £6m the following year so it will have paid off the debt by the time it is abolished in March 2013.

The PCT is planning to spend £1.6 million on refurbishment at Chippenham, Trowbridge and Devizes hospitals, plus £137,000 on its headquarters, Southgate House in Devizes.