Health board's 'grave' budget warning

The head of Cardiff and Vale of Glamorgan has told its staff that its financial position is in a "grave" state.

Cardiff and Vale University Health Board has implemented a recruitment freeze because of "unprecedented" financial pressures.

The health board is responsible for the biggest hospital in Wales, the University Hospital of Wales in Cardiff.

According to a specially released newsletter Cardiff and Vale chief executive Jan Williams said: "The current financial position is grave and I cannot stress enough the need for everyone to work together to meet the challenge."

She said "urgent action" was required to fulfil a "legal obligation to break even by March" 2012.

The first six months of 2011 had been "very challenging" and the board "faces unprecedented financial and performance pressures" she added.

The board has to make savings of £87.8 million and plans have been decided to save £56.3 million. 

The board said it had stopped any external hiring of staff as part of the drive to make savings and cut costs.

Conservative assembly leader Andrew RT Davies said: "The document is an extremely damning indictment of Labour's mismanagement of the Welsh NHS." 

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