Wandsworth faces losing up to £5million in NHS funding thanks to new guidelines introduced by the Department of Health.

A new formula for calculating the financial needs for London's Primary Care Trusts suggests Wandsworth is receiving 15 per cent more resources than it needs.

When implemented, it means the borough will receive only the national minimum funding increase over the next three years, resulting in a reduction in the amount of money it would normally expect to receive.

A spokesman for Wands-worth PCT said: "Obviously we are disappointed we are not at the top end of the funding allocations.

"However, the Wandsworth PCT budget will grow by 30.46 per cent over the next three years.

"The introduction of the three-year allocation, in place of the previous system where money was only allocated for a single year, gives us more power to plan healthcare for the people of Wandsworth."

The new system is calculated in three yearly cycles, beginning this April, as opposed to the present annual system.

It is calculated by combining health factors with social needs based on income, education and housing.

It gives higher priority to boroughs where deprivation is focused in small, localised areas.

As a result, Wandsworth suffers because deprivation in general is spread out across the borough.

Speaking at last week's care services overview and scrutiny committee, Coun John Ellis commented: "This index does London no favours and Wandsworth even less £5million is being taken from us and spent elsewhere."

Councillors agreed to contact Health Secretary Alan Milburn directly to justify the cut and explain in full how the new formula is calculated.

Council leader Edward Lister said: "The Government has systematically understated the true level of need in an inner city borough like Wandsworth. This has a direct impact on the amount of money we get for health care.

"They have imposed a new system without consultation and without explanation."

January 30, 2003 09:00