The NHS in England is heading for an estimated surplus of £1.75bn in the current financial year, official estimates predict (based on data from the first three months of the financial year).  

In the last financial year, the NHS in England recorded a surplus of £1.658bn, following a deficit of £547m in 2006-07. The department said the money would stay in the NHS, and be used to fund patient care.

However, Norman Lamb, the Liberal Democrat health spokesman has questioned whether taxpayers’ money was being used effectively.  

Mr Lamb, said: “This forecast surplus begs the question whether taxpayers’ money is being used effectively.  

“What evidence is there that trusts are using their surpluses to prepare for fluctuations in demand and investment in new services? Is this the NHS preparing for a period of slower growth in funding? Or is this individual trusts building up a surplus so that they can survive in a more competitive environment?”  

Mr Lamb said that many areas of patient care, such as public health, alcohol treatment and mental health services, were being starved of funds.  

“Several reports have shown that the current funding system risks damaging quality in the NHS but has done nothing to improve efficiency.  

“Ministers should focus on sorting this out rather than patting themselves on the back for allowing the NHS to bank more and more cash.”