Health services in central Hampshire will get a generous cash increase from the Government next year.

"But there isn't going to be bundles of money," warned John Williams, finance director of Winchester and Eastleigh Healthcare NHS Trust.

The cash increase for Mid Hampshire Primary Care Trust would be 29.16% in total over the next three years, he said.

It was likely to be 9.1% next year. Of that, at least 7% would go on inflation - pay and price rises and other targets such as junior doctors' hours, insurance premiums and improvements like new drugs.

"It's a generous settlement in terms of increased cash," he said. "But the real amount for growth will be 2.5 % if we're lucky."

The trust is the commissioning organisation for services for most people in central Hampshire. It pays Royal Hampshire County Hospital, Winchester, for services, for example.

Nationally, primary care trusts, such as Mid-Hampshire, will get 75% of the money coming from central government. Acute trusts, such as Winchester and Eastleigh, will receive 25%.

The Winchester and Eastleigh Trust had managed to save £3m in its budget of £92m, Mr Williams said. "That's a real achievement - but we need to pay for undertakings in the private sector to meet our in- and outpatient targets.

"We need to spend between £800,000 and £1m in the private sector in the remainder of this financial year."

The difficulty of the trust's financial position should not be mistaken, he said, pointing out that i had begun the year with a deficit of £8.6m.

Identification and implementation of a £6.1m savings programme, with £3m delivered so far, would still leave a deficit of £2.5m.

"It is most unlikely to improve without external assistance," Mr Williams added.