Revealed: The crumbling NHS boards shortchanged by hundreds of millions of pounds

Crumbling Scottish health boards have been shortchanged by hundreds of millions of pounds, according to official figures.

Funding allocation targets calculated to ensure resources are distributed fairly across the country show NHS Lothian alone has received more than £425 million less than it should have over the past 15 years.

Grampian had a shortfall of more than £262 million over the same period, Lanarkshire lost out on more than £195 million, Fife was underfunded by nearly £112 million, and Forth Valley was down by nearly £106 million.

The new figures can be revealed today as health boards across the country are forced to make devastating cuts to local services.

Where do the figures come from?

Health chiefs use the National Resource Allocation formula to calculate how NHS funding should be spread across the country based on the demand on services in each area.

The formula takes into account the local population, their age and sex, different life circumstances and the excess cost of delivering healthcare in remote areas.

A major reason for the shortfall in several regions appears to be a whopping overspend in Greater Glasgow and Clyde, where bosses have been handed £743 million more than the formula says it is due.

During the same period, the health board was put into “special measures” relating to infection control procedures after the deaths of two children at the Queen Elizabeth University Hospital.

Scottish Conservative deputy health spokesperson Tess White said: “This damning new data shows the SNP government aren’t following the parity formula for the majority of Scotland’s NHS boards.

“We aren’t talking about one year, or two. Grampian, my local health board, has been underfunded by £260 million since the SNP got into power.

“People will wonder how such huge sums could have been used to help save lives and support struggling local services.

“Repeated budget cuts have created structural problems over the years.

“The erosion of community hospitals, closed inpatient facilities, and the end of night time minor injuries have all created substantial pressures on hospitals, GPs and the ambulance service.”

The shortfall seen at many health boards has led, in part, to devastating cuts.

The Scottish Government has also announced a two-year freeze on any new capital funding.

NHS Lothian has had to deal with a £133 million blackhole this year – representing 7% of its total budget.

Bosses have warned it could lead to longer waiting lists, staff reductions, cancelled operation and even greater difficulty in seeing a GP.

Unprecedented challenges

Meanwhile, Grampian is preparing to make “eyewatering” savings of more than £77 million in 2024-25 and faces an “unprecedented challenge”.

It follows well-documented pressures on Aberdeen Royal Infirmary, which has seen more than a dozen ambulances queuing outside on multiple occasions.

Lanarkshire, the home patch of current SNP Health Secretary Neil Gray, is facing a £112 million black hole and huge cuts to plug the deficit.

Further concerns have also been raised about the government appearing to “dodge” questions about the lack of parity with the formula until the figures were obtained through Freedom of Information legislation.

Scottish Lib Dem leader Alex Cole-Hamilton lodged a written question to ministers in October last year asking for details of NHS Grampian’s target according to the formula, its actual funding allocation and distance from parity since 2016.

The answer from Michael Matheson, who was at the time health secretary, talked up additional funding given to boards but did not provide any of the requested information.

Cole Hamilton said: “It’s endlessly frustrating that the Scottish Government tries to dodge basic questions about NHS funding.

“The NHS is by far the biggest item of public spending but some health boards have not had fair treatment.

“Many patients living in Grampian and the Lothians will wonder whether they would still find themselves stuck on waiting lists if their health board were getting parity of funding.

“The health secretary must ensure that patients up and down Scotland are getting fair treatment and be honest and open about how funding has been divided up.”

What does the Scottish Government say?

The Scottish Government said it has invested a record £19.5 billion in health and social care for this year.

It added: “In 2024-25, we provided an additional £31.1 million in funding for NRAC parity ensuring that all boards remain within 0.6% of parity, and since 2012-13 over £3.5 billion of additional funding has been committed to those NHS boards below their NRAC parity levels.

“We have committed to a review of the funding formula which supports vital work to reduce health inequalities; ensuring that we continue to allocate funding according to the relative need for healthcare in each Board area and work on this is underway.”