SALISBURY NHS Foundation Trust's £21million debt is to be written off by the government.

More than £13 billion of NHS debt is being scrapped as part of a package of NHS reforms announced by the Health Secretary.

The changes, the government say, will provide financial support during the pandemic, as well as support the NHS to become more financially sustainable.

Salisbury NHS Foundation Trust's debt totals £21,082,000.

Health Secretary Matt Hancock said the £13.4 billion debt write off will "wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services".

More than 100 NHS hospitals will see their historic debt removed. 

This is part of a package of reforms to the NHS financial system, which have been a collaboration between the Department of Health and Social Care and NHS England.

He said: "I remain committed to providing the NHS with whatever it needs to tackle coronavirus, and the changes to the funding model will give the NHS immediate financial certainty to plan and deliver their emergency response."

Salisbury MP John Glen added: “The NHS needs all our support to help fight the challenge we face from Covid-19. I am delighted that the Department for Health and Social Care has decided to write off over £21m of debt for Salisbury NHS Foundation Trust. This will be a great help to Salisbury District Hospital, freeing up more resources to take the fight to coronavirus.”

The news was also welcomed by Devizes MP Danny Kruger, who said: "I am very pleased that the government has agreed to write off the debt of the hospitals and NHS Trusts in the South West. Our brilliant NHS staff need all the support they can get at this time and it's not right for NHS managers to be diverting what are funds needed on the front line.”

This package is launched in combination with a "simpler" internal payment system to help NHS trusts in dealing with the coronavirus (COVID-19) response, which was agreed with NHS England.

The change aims to give hospitals the necessary funding to carry out their emergency response, despite many hospitals cancelling or limiting their usual services such as elective surgery or walk-in clinics due to the virus.

NHS chief executive, Sir Simon Stevens, added: "We’ve advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position - not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan.

Under the new rules set out in a letter to all NHS trusts, should hospitals need extra cash this will be given with equity, rather than needing to borrow from the government and repay a loan.