HEALTH minister John Hutton denied the Government was electioneering after it announced millions of extra pounds for the health service in Morecambe Bay this week, writes Health Reporter Michaela Robinson-Tate.

The MP for Barrow and Furness was speaking as a statement was made about funding for primary care trusts nationally.

Morecambe Bay PCT is to receive an 8.6 per cent increase for 2006/07, and an 8.4 per cent increase in 2007/08. The percentages equate to a £32 million rise in 2006/07 and £34 million the following year.

Speaking from his office at the Department of Health in London, Mr Hutton said the funding announcement was always made at this time of year.

"I don't know when the election is going to be and I'm sure you don't either," he said. "This is not electioneering, these are real increases in resources."

The Minister of State for Health stated that the announcement represented the "biggest cash increases" that the NHS had ever seen.

When asked about the difficulties that the PCT in Morecambe Bay has faced in balancing its books, Mr Hutton said that although there were challenges, the extra resources should make the difference. "There should not be any cuts in front line services in the NHS when it has increased its resources at these record levels."

The chief executive of Morecambe Bay PCT, Leigh Griffin, welcomed the announcement, but he added that he was waiting to find out if there would be any additional resources for specific targets.

Dr Griffin said the PCT was focusing on setting its budget for 2005/06, for which it received a 9.4 per cent increase. Although acknowledging that the rise represented a lot of cash, he said half would be taken up with inflationary pressures; more than £2 million needed to be spent on mental health services, which received a zero star' rating last year; and there were other costs such as new GP contracts, and a new pay system for NHS staff.

The PCT was also steadily reducing its reliance on brokerage, or borrowing funds, and would therefore need to pay back cash.

Dr Griffin said it was impossible at this stage to promise there would be no service cuts. "I can't make that guarantee at the moment," he said. "We are working through the cost consequences of a whole host of issues."