No more cash for delayed and over-budget hospitals in Aberdeen

SNP health chief Michael Matheson has admitted there is no extra cash to help finish two over-budget and delayed Aberdeen hospitals.

The Anchor Centre aims to offer treatment for cancer and blood disorders, while the Baird Family Hospital will provide maternity services, breast screening and gynaecology.

The two major projects next to Aberdeen Royal Infirmary were first expected to open in 2020 but have been hit by repeated delays and soaring costs.

Mr Matheson gave the shock update to MSPs in a Holyrood committee investigating spending decisions.

• Why have construction projects in Scotland, including the Baird Family Hospital, faced delays?

It’s the latest setback after a series of problems.

Redesign work was ordered after to fix the ventilation and water systems.

Around 170 sinks are being removed from the Baird design and air circulation systems will need to be changed at the Anchor Centre.

NHS Grampian has yet to establish the cost for the work and the health board is still not in a position to give firm opening dates.

‘No additional capital’

North East MSP Tess White quizzed Mr Matheson at Holyrood on whether any extra cash will be forthcoming to fund the design changes.

He said there is “no additional capital” available, blaming UK Government cuts of almost 10% to the Scottish Government’s capital budget over the next five years.

The SNP minister added that construction costs for projects in delivery have “already increased” as a result of inflation.

The Covid pandemic and inflation in the construction industry has already driven the price up.

The total bill last stood at £261m – more than double the original £120m estimate for the two facilities.

‘Extremely worrying’

Ms White said it would be “extremely worrying” to the hospital and would lead to “serious questions about delays to completion”.

In response, Mr Matheson said: “It’s a Grampian project and they’re taking it forward as a board.

“We’re providing as much support and assistance as we can to make sure we get these things right and that we address any changes which have to be made.

“But I’m afraid there is no additional head room in the capital budget given the cut that we’ve experienced from the UK Government to our capital budget and the direct impact that then has on capital projects right across the Scottish Government.

“Any additional costs will have to be met within the project costs overall.”

Speaking after the committee, Ms White said: “Today’s news about the lack of any financial headroom will be very difficult for the board.”

A spokesman for NHS Grampian said: “We remain in dialogue with the Scottish Government regarding the project.

“An update on the project will be given to the next meeting of the NHS Grampian board, in March.”

A UK Government spokesman said: “The Scottish Government is currently receiving a record £41 billion per year funding settlement from the UK Government – the largest in the history of devolution and one that was further topped up by decisions taken at Autumn Statement.

“It can also borrow up to £450 million for capital investment on top of this record funding, and the UK Government has agreed to inflation-proof that limit going forward.”