NHS sinks into £7bn cash crisis as inflation and strikes bite

Consultants on the picket line outside Manchester Royal Infirmary during a 48-hour walkout in July by senior hospital doctors over pay. Photograph: Christopher Thomond/The Observer

The NHS is heading into an unprecedented financial crisis and will overspend its budget by at least £7bn next year as the effects of inflation and strikes plunge hospital trusts into alarming levels of debt, according to leading independent experts.

The problem of soaring deficits is hitting a growing number of trusts across England ahead of a likely general election within 12 months, and will raise further serious doubts about Rishi Sunak’s chances of meeting his pledge to cut record waiting lists.