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Aneurin Bevan University Health Board is now under greater financial scrutiny by the Welsh Government due to concerns about “extreme” challenges.

The health board was previously on the lowest level of scrutiny – routine arrangements – meaning it was business as usual. It is now on the next level up known as “enhanced monitoring”.

A recent report from public spending watchdog Audit Wales revealed all of Wales’ health boards had a combined deficit of £151.9 million during the 2022/23 fiscal year.

This announcement means that all health boards in Wales are now subject to one of three escalated measures – enhanced monitoring, targeted intervention or special measures.

For context, the Welsh Government spends more than £10bn a year on health and social care – almost 50% of its entre budget.

Health boards are facing extreme financial challenges caused by years of UK Government austerity measures and record levels of inflation, according to the Welsh Government.

Prior to today’s announcement, Powys Health Board was the only other Health Board operating under “routine arrangements”. It is now also on “enhanced monitoring” – the same level as ABUHB.

All other health boards were already on some form of higher monitoring – with Betsi Cadwaladr on the highest level, known as “special measures”.

Health Minister Eluned Morgan said: “We do not make these decisions lightly and it reflects the very difficult financial position we are in, as a result of inflation and austerity, and the challenges affecting health boards.

“We are seeing operational pressures, long waiting lists, and an extremely challenging financial position in the NHS – but this is not unique to Wales.

“We will support health boards to improve their financial planning positions, but some difficult decisions will need to be made as we work through this very tough financial challenge. In the coming weeks and months, together with the NHS, we will be working with the public to outline where savings need to be made to reduce these significant budget deficits.”

‘Lost grip’

Commenting on the news Welsh Conservative Shadow Health Minister, Russell George MS said: “This is a sad indictment of the state of our Labour-run Welsh NHS.

“While it is positive that the Labour Health Minister is taking some action by acknowledging the dire state of our Welsh NHS, I have little faith given the lack of improvements we are seeing in health boards already being monitored that much will change in the coming months.”

Plaid Cymru’s Health and Care spokesperson Mabon ap Gwynfor MS said: “All health boards in Wales are now in some form of escalated measures. This is serious. 

“For the Government to publish this as a written statement with no opportunity for immediate Senedd scrutiny is a cynical move by a minister that seems to have lost grip on the entire situation. It should not have taken until now for the minister to realise the gravity of the situation health boards were in and to take action. 

“The Health Minister must urgently address the implications of escalating intervention arrangements and provide both a clear picture of the financial wellbeing of Health Boards and a meaningful plan that gives confidence to patients, particularly with undoubted winter pressures approaching.”

Caerphilly Observer has contacted Aneurin Bevan University Health Board for comment.