THE trust battling to restore trust in Colchester’s hospitals is running out of cash.

Costly improvements aimed at bringing Colchester Hospitals Trust out of special measures means its reserves are dwindling so rapidly bosses will have to take out a loan next year.

A governors board meeting was told yesterday*thurs* how a review by new interim finance chief Andy Morris found the trust would probably run a budget deficit of just over £21 million this year.

With the trust already down £13 million after six months, the meeting heard the latest figure was much more realistic than the £8 million deficit predicted at the start of the financial year.

Interim chief executive Dr Lucy Moore said with £25 million in the bank, the trust may have to take out a loan from the Department of Health, via regulator Monitor, at some point next year.

She said: “Our cash position during the course of the year is deteriorating. We started the year with £25 million cash in the bank.

“As we move into the next financial year we will need to find a way of borrowing in order to cover the period going forward. We’re in discussions with Monitor about that.”

See Friday's Gazette for more