This is the latest financial statement from East Lancashire Hospitals NHS Trust, which must now save this amount by the end of the financial year in April as part of its duty to break even.

Two key issues have been pinpointed as carrying much of the cash burden and which need "strong financial management" if the Trust is to break even on its budget, which is more than £250m.. Costing around £2m. altogether, they are the move of elective gynaecology services to Burnley General Hospital, which is set to open in 2010, and the creation of an extra 28-bed ward, which is expected to cost more than £1m., and the extra operational expenditure costs which took place in October. Most of these costs were focused around surgery and more funds needed to support patient flow in general medicine.

Mr Stephen Brookfield, director of finance, capital, planning and IT at the Trust, said: "While we continue to experience financial challenges, we are taking every measure we can to ensure we break even at the end of this financial year. The move of gynaecology services over to Burnley General Hospital earlier than planned has had an impact on our financial status as has the increased demand on our emergency and urgent care services.

"However, we continue to closely monitor areas where overspending is occurring and are working with the departments to deliver our break-even plan."

Money-saving measures include putting restrictions on non-essential training of staff, reviews of the use of medical locums which can cost large amounts on top of staff wages, and improving productivity across the hospitals, which include Burnley General, the Royal Blackburn and Pendle Community Hospitals.