THE crunch has hit everyone and whether you’ve got a budget of £170 or £170million the rise in prices and fall in interest levels will have an effect.

At Warrington and Halton Hospitals NHS Foundation Trust the same struggles that hit an average homeowner are hitting the financial team.

The cost of running the hospital has risen starkly, and despite an uplift from the Government to cover them, there is still a gap to be bridged.

A fall in interest levels on the £170m in the bank and the £2.6m surplus it made in 2008/09 has hit the long-term forecast.

Bosses are also juggling repayments of a three-year £8.8m loan taken out in 2006, which is being paid back at the 2006 interest rates.

“The NHS has been in a prime investment time in the past 10 years,” explained Catherine Beardshaw, chief executive of the hospitals.

“It will continue this year and the following year but in 2011/12 we’re expecting public sector spending to change.

“We need to make sure now that we’ve got the right services in place. We’ll need to do things differently.”

The recession also brings another set of problems for the health sector.

Unemployment tends to lead to alcohol abuse, said Mrs Beardshaw, and then the hospital sees an increase in domestic violence as well as alcohol-related illnesses, so extra strain is expected on A&E.

“It’s going to be challenging in the public sector,” said Mrs Beardshaw.

“We can view it as an absolute disaster and we’re all going to hurtle into oblivion, or we can see it as different challenges and opportunities.”

Her team is trying to support nearby businesses by using local labour for work on the Warrington and Halton sites.

It is also exploring the possibility of starting an apprentice scheme in conjunction with Warrington Collegiate for its estates department, and providing volunteer work for Duke of Edinburgh students.

Long term unemployed people could also volunteer as greeters to get them back into a work environment and build their confidence if plans go ahead.