A HEALTH trust will have to find “better and smarter” ways of using money, an NHS boss said as the trust announced plans to cut millions from its annual spending.

Primary care trust NHS North East Essex will need to make new “efficiency savings” of £5.3million in 2010-11, rising to £6.9million in each of the next three years.

Paul Watson, the chief executive of the trust, shied away from talking about cuts to services, but admitted the trust would be seeing an end to years of funding growth.

He said: “Further increases are going to stop, which means there is still going to be a lot of money to spend, but we are not going to have further growth.

“We will need to find better and smarter ways of using the money.”

He had been challenged by Angela Barnes, a governor for the North Essex Partnership mental health service, during a question and answer session.

She told him “cuts are coming”, and asked for assurances mental health services would not be cut.

Mr Watson said he could not promise specific services would not be changed, as the trust looks for ways to make its money go further.

Jane Hanvey, the director of resources at the trust, said: “Areas targeted for savings will be those where services can be provided more efficiently and effectively, such as reducing prescribing wastage, reducing inappropriate referrals into hospital, and contract efficiencies.

“In addition to this, we are also looking to reduce back office and management costs.”

She said there are “no plans currently” to cut any services.

A financial plan for the primary care trust shows leaner times are expected ahead.

Its medium term plan for 2010-14 shows the trust expects a 6.1 per cent increase in funding in 2010-11, but then no further growth in real terms over the next three years.

Notes given to the NHS trust’s board said it would need to increase productivity or make savings to continue delivering its priorities beyond 2011.

The NHS trust plans to save 3.5 per cent of its expenditure in “efficiency savings” in the financial year 2010-11, and another 4.5 per cent each year after that.

It comes on top of another £9.9million in savings the trust is required to make in 2010-11 from an annual budget of £542million.