NHS cut claim 'greatly exaggerated'

On the eve of its annual conference, the RCN said it was laying bare "the myth" that the debt crisis in the NHS had been solved. In a report called Our NHS - Today And Tomorrow, the union described the deficits crisis as "real and entrenched".

But the Prime Minister told BBC One's The Politics Show: "Actually, there have been only about 300 clinical jobs lost. "The fact is, today we have a workforce which is 300,000 more than it was in 1997."

As a result, he said, by the end of 2008 the issue of waiting lists will be "effectively dealt with".

The RCN report said almost three-quarters of newly-qualified nurses were still unable to find jobs and condemned "rushed, uncosted and untested" Government reforms. It outlined how the financial crisis had affected patient services, including for those suffering from multiple sclerosis, epilepsy and mental health problems.

The financial crisis has also hit waiting times, especially for diagnostic tests, and has led to the closure of community hospitals in rural communities, it said.

Furthermore, the vast majority (87%) of specialist nurses say NHS cuts are having an adverse effect on patient care. Nearly half (47%) were aware of service cuts in their specialist area and almost one in five said they were personally at risk of redundancy.

More than half (55%) said they were aware of other specialist nurses in their field who were at risk of losing their jobs. The report called on the Government to work with frontline staff, give trusts "more time and flexibility" to achieve financial balance, and "move away from the culture of imposing redundancies, vacancy freezes, and post deletions".

According to the latest Government figures, the NHS as a whole is on track to reach financial balance by the end of the financial year.

At present, 35% of NHS organisations are forecasting a deficit, with gross debts for the year expected to total almost £1.32 billion.