THE group responsible for buying health care for Wyre Forest residents overspent by £2 million in the past financial year and is predicting further failures to balance its books.

At a meeting of Wyre Forest Primary Care Trust Board, chief executive, Eamonn Kelly, said there was "no simple solution" to the issue of overspending and forecast the trust would rack up further deficits of £3 million for 2005-2006 and £1.4 million for 2006-2007.

That was according to the draft of the PCT's Local Delivery Plan for 2005 to 2008, which forecast it would break even in 2007-2008.

At a meeting, on Tuesday, discussing the document and its submission to the West Midland South Strategic Health Authority for approval, Mr Kelly said members of the board were "very, very reluctantly" presenting a plan that failed to fulfil the statutory requirement to set a balanced budget.

The green light was eventually given, but not before a lengthy debate, during which clinical director of specialist children's services, Dr Andrew Mills, said: "I worry because I think there is a fundamental problem that has been in Worcestershire for probably 10 to 15 years."

He added: "Worcestershire's health economy doesn't add up - this is just a manifestation in the Wyre Forest area."

Key targets the PCT must meet between 2005 and 2006 include maximum waits of six months for inpatient care and 13 weeks for an outpatient and a reduction in teenage pregnancies.

Trust chairman, David Priestnall, said: "It would have been slash and burn like no-one has ever seen" to have balanced this year's balance by taking out £3 million of spending.

Mr Kelly told the Shuttle/Times & News, however, that the PCT was not experiencing "hard times", because it was due to receive £32 million of extra funds over the next three years.

"There is an issue for the PCT in relation to its financial responsibility but there is a lot of money coming in and a responsibility to make sure there are improvements in services," he said.

"It's my job, as chief executive of the board, to find a way through this situation and that's what we're doing."

At a meeting of Wyre Forest Public and Patient Involvement Forum last week, deputy chief executive, Stella Keysell, described the PCT as "financially vulnerable" and indicated a merger with Redditch and Bromsgrove could be on the cards.