EAST Lancashire's hospital authority is set to steer clear of debts during a financial year for the first time, a finance boss believes.

But East Lancashire Hospitals NHS Trust would only be in the black if no "additional pressures" arose, its director of finance, information and planning, Stephen Brookfield said.

The trust was formed in 2003 and overspent each year to the total of more than £10million.

At the end of December it was £287,000 in debt compared to £2million 12 months previously.

But Mr Brookfield told members of the trust board: "I can not over emphasise how sensitive our financial position is moving into the final three months of the year.

"And, whilst our position still remains break even, there is little or no scope to manage additional pressures during this period."

Last April the trust put in place its biggest ever savings plan, in a bid to claw back £14million.

Jobs were at risk if this cash was not found bosses said and the move saw 20 per cent of overnight beds being axed to save £2.5million.

About three per cent of the savings, £490,000, is unlikely to be found, Mr Brookfield said.