A CASH- strapped NHS trust is cutting one in three jobs to save millions of pounds.

Wards will also be shut in the 'unprecedented' cull hitting 600 of the 1,500 staff in a decision that has angered MPs and unions.

It is the biggest proportion of staff to be dumped by a health trust and will hit everyone from doctors, managers and nurses through to cleaners.

The cuts at Scarborough and North East Yorkshire NHS Trust could also threaten local services - especially maternity wards.

The news came a week after it emerged that a local NHS chief received a £900,000 redundancy pay-off. Last year trusts across the country shut wards and made staff redundant to get the NHS out of a £500million debt.

The Royal College of Nursing said up to 20,000 nursing jobs were lost. The Health Service ended the financial year in surplus but despite this a third of trusts are still in the red.

The trust, which runs hospitals in Scarborough and Bridlington, faces a £20million deficit and hopes the cuts will save £10million.

Trust chief executive Iain McInnes said the cuts were 'a major change programme that will result in a stronger service for our patients.' Sandy Hogg, the trust's new director of finance, blamed the deficit on 'weak financial management over recent years'.

She said fewer staff were needed because patients were staying for shorter periods in hospital and more care was provided in the community.

She added: 'These factors mean we will need fewer beds on fewer wards.

'We have to reconsider how we can best provide services to meet modern standards and needs, while making sure we live within our income. We have no choice but to reduce numbers.'

The trust said it hoped to keep redundancies down through people leaving of their own accord.

 Robert Goodwill , Conservative MP for Scarborough, said: 'It will have a devastating effect on already demoralised staff and will be a big cause for concern for patients who face cuts in services and longer distances to travel for treatments. Maternity services are most under threat.

'And when the town's major employer sheds 600 jobs, it is bound to have damaging repercussions on the local economy. It will be a body blow for local businesses.

'What really sticks in the craw is that just last week we heard about almost £1million given to just one member of staff in severance pay.'

David Johnson, 50, the former chief executive of the North and East Yorkshire and Northern Lincolnshire strategic health authority was given an £899,810 payoff after his organisation was abolished.

It is believed to be one of the biggest payoffs to an NHS official and would cover the salaries of 46 nurses for a year.

Unison regional officer Ray Gray said: 'Job losses on this scale would devastate the NHS in this part of Yorkshire and have a damaging effect on the local economy.

'It is vital the government steps in to stop the disaster happening.'

Geoff Martin, of campaign group Health Emergency said: 'This nails the lie that Alan Johnson and Gordon Brown listen to healthcare workers.'

Daily Mail 19 July 2007