An NHS trust has managed to save £15 million as it battles to balance its income and expenditure.

West Hertfordshire Hospitals NHS Trust, which operates Watford General, St Albans and Hemel Hempstead hospitals, has announced it has met a target to keep its budget deficit to £11.5 million for 2006/07.

It also claims performance has improved in a number of areas and is forecasting a small budget surplus for the coming financial year.

However, in light of cuts to services a level of scepticism remains about the trust's financial recovery plan.

The trust has had a difficult year, and implemented a number of controversial measures to save money.

Each staff member was told to save £2.50 a day by taking steps such as prescribing cheaper medications and cutting back on tests.

Other services, such as ante natal classes for expectant mothers, were "temporarily suspended".

Trust chief executive David Law said: "This has been a challenging year for our staff.

"They have worked extremely hard to achieve the improvements in many of our performance standards, and I would like to thank everyone who has contributed during the course of the year.

"In terms of the Healthcare Commission's annual health check, due out this summer, I hope all the hard work will be recognised."

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