Dan Rogerson MP for North Cornwall

The real issue facing Royal Cornwall Hospital is unfair Government funding for Cornwall's NHS services, local MPs have warned in response to the hospital Chief Executive's resignation.

Brian Milstead, Chief Executive of RCHT, announced his resignation today following news that the hospital’s deficit has almost doubled. Local MP, Matthew Taylor, said his decision was an "honourable one" but that his job had been made impossible by Government under-funding.

Three years ago the Government decided to tie NHS funding 100% to local wage levels. Because local Cornish wages are the lowest in the country, yet NHS wages are set nationally, this has created a funding crisis for the hospital. Liberal Democrat MPs in Cornwall last year met Health Ministers and persuaded them to set up a review of this funding formula – but that review is still not complete, and will not affect funding until 2008. Unless the funding crisis is sorted out by then to allow the hospital Foundation status, Government rules mean it will be taken over by Derriford or Exeter Hospital.

Commenting, local MP Matthew Taylor said:

"Brian Milstead as Chief Executive has responsibility for administering the Government set hospital budget, and has acted honourably in taking that responsibility. However, the truth is Cornwall's NHS funding is far too low because the Government links it to local wages."

"Unfair Government funding has led to Brian Milstead's resignation, but, more importantly still, it is leading to many dedicated local NHS staff losing their jobs, and cuts in patient services. With more and more hospitals around the country in financial crisis, it is the Secretary of State who should be resigning."

Colin Breed MP (South East Cornwall) added:

"Given the unfair Government funding, it would have taken a miracle to balance the hospital budget this year. Brian Milstead has worked with local MPs to make the case for fair funding to ministers and his resignation must not be allowed to divert attention from ministerial responsibility for this funding crisis."

Cornwall's Liberal Democrat MPs paid tribute to Brian Milstead's role in winning major NHS improvements, including local training at the Knowledge Spa, the new cardiac services, and the Cancer Unit.