NHS set for £1.8bn surplus

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Data released by the Department of Health, based on the first nine months of 2007/08, confirms previous estimates.

The "vast majority" of NHS trusts are expected to be in balance, the Department said.

In 2005/06, the NHS ended the year with a £547 million deficit.

The overall gross deficit is now expected to be £143 million compared with £917 million at the end of 2006/07.

David Nicholson, chief executive of the NHS, said: "Today's report not only shows that the NHS now has a strong and sustainable financial position, but also, importantly, it shows that we remain on course to deliver against our key pledges."

The figures are included in the third NHS quarterly performance report, which outlines progress towards targets such as tackling bugs like MRSA and 18 weeks referral to treatment.

The study said there has been "continued progress" on infections, with an 18% decrease in MRSA bloodstream infections and a 21% decrease in Clostridium difficile infections.

This is despite figures last week revealing that the number of deaths linked to C. diff soared 72% between 2005 and 2006 in England and Wales.

A total of 69% of patients admitted to hospital (compared with 48% in January 2007) and 79% of non-admitted patients waited 18 weeks or less, according to the report.