WINCHESTER and Eastleigh Health-care NHS Trust, managers of Andover hospital, might have to make savings of £5.8 million to break even next year.

This is because government targets for reducing operation waiting times, lower waiting lists and out-patient appointments are becoming more and more demanding.

And, trust members were told in the revenue and capital budget for 2002-03, they are not being matched by an increase in money. Using what he called the 'widget' principle, director of finance John Williams said that if increased widgets were made and sales increased, more money ensued.

But seeing more patients and performing more operations at the Royal Hampshire County Hospital in Win-chester did not mean that you got more cash from the Government or via the strategic health authority. Hence the possible deficit.

An example of how the Government was driving standards up was that until now it insisted no-one should have to wait more than 18 months for an operation. In the new financial year, that will go down to 15 months and by next April, the longest wait will be 12 months. The allocation of funds nationally amounted to an increase of 9.9 per cent, Mr Williams said. Locally, this had translated to a minimum for each primary care trust of 9.3 per cent.

"Our cost pressures are going up £7 million on last year's budget of £80 million," Mr Williams said. "So that £7 million is used up just to stand still. The nine per cent is gone."

David Livermore, trust board chairman, commented: "We also have pressures with the funding formula. I'd like to pay tribute to MPs who have generated debate in the House of Commons with a private member's bill. We get 83 per cent of the national average of what's available for health. That is on the assumption that in Hampshire we are all wealthy and fit and that is patently untrue."

Rod Halls, trust chief executive, pointed out that there was a cost to all the extra activity demanded by the Government and it was not just in money. Clinical and medical staff had to work much harder.