Financial pressures reinforce need for service transformation

Responding to Audit Wales’ audit of NHS bodies’ 2025-26 accounts, director of the Welsh NHS Confederation, Darren Hughes, said:

“Audit Wales’ findings highlight the significant challenges facing NHS organisations across Wales. 

“NHS organisations have worked hard to reduce deficits by identifying efficiencies and reducing costs, including continuing to cut spend on agency staff. However, financial pressures remain intense, driven by rising demand and increasing costs.

“As a result, NHS leaders are having to make exceptionally difficult decisions to try to live within their financial envelopes. While this must continue, efficiencies alone will not be enough to secure a sustainable future for the NHS.

“We need an honest national conversation about the changes required to ensure health and care services can meet future demand. Service redesign, delivered in partnership with staff, patients and communities, is essential to improve patient outcomes, make the best use of public resources and ensure care remains sustainable for future generations. 

“The Welsh Government’s commitment to a whole-government, cross-sector approach to prevention is a positive step. Improving population health and reducing health inequalities is critical to lowering future demand on services and tackling the growing burden of illness and care requirements, particularly as Wales’ population ages.

“Investment in NHS estates, infrastructure and digital technology is equally important. More than 60% of the NHS estate is over 30 years old and the essential maintenance backlog exceeds £1 billion. Greater flexibility and alternative approaches to capital funding should be explored by the government to help NHS organisations reduce running costs, modernise services, improve productivity and deliver better value for taxpayers.

“On behalf of NHS leaders across Wales, we’d like to thank the Auditor General and his team as he comes to the end of his term. Their important work plays a vital role in strengthening accountability and supporting the long-term sustainability of public services. Diolch yn fawr.”