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Health News: Cash crisis - NHS in the black but debts remain

The NHS as a whole is back in the black, but more than a fifth of organisations are still in deficit meaning cut children's services are unlikely to be reinstated.

The latest quarterly financial results for 2006/07 show a net surplus of500m across the NHS. However, services still face a total deficitof 911m, shared by a fifth of organisations, down from the 1.3bn deficit shared by a third in 2005/06.

Niall Dickson, chief executive of the King's Fund think tank, saiddespite this the NHS as a whole was now on a firmer footing. But LindaMcQuaid, independent healthcare consultant specialising in children'sservices, said services that had been hit by cuts, particularly childand adolescent mental health services, were unlikely to be regained.

Children's organisations have predicted children's services will notbenefit from the turnaround because managers are likely to prioritiseadult services (Children Now, 28 February-5 March).

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