Just a month into the 2026/2027 financial year and alarm bells are ringing over Powys Teaching Health Board’s budget position.

At a health board meeting on 20 May, members were provided with an update from the first month of the new financial year.

The report shows that at the end of April; the health board had a £5.42m deficit which is £1.703m over the planned for £3.72m deficit.

The health board agreed a budget annual plan back in March for a £44.64m deficit which has been submitted to the Welsh Government.

Finance director Pete Hopgood told members that it was just a summary position at the moment and that the plan was “unsupported” as it hasn’t been signed off by the Welsh Government yet.

Mr Hopgood said: “We will be monitoring our financial performance against that plan which includes a savings target of £22.9m.”

“Our latest savings forecast is that we are circa 70 per cent to delivering our target which is circa £16m of the £22.9m.

“That means that there’s plans and actions in place.

“But we need to ensure there is ongoing focus around delivery of those plans to close that gap and how it underpins the overall financial plan.”

He added that the underlying financial deficit would be included in future reports as the year progressed.

A Financial Recovery Board has been set up to help the health board work towards balancing their budget.

Independent member for finance, Steve Elliot said it was a “concern to be £1.7m above our forecast deficit position at this point”, adding that a “straight line extrapolation” of the £1.7m could see the figure rise to £20m above the planned deficit position by the end of the year.