Newry and Armagh MLA Justin McNulty has warned that planned budget cuts across the Southern Health Trust could disproportionately affect Daisy Hill Hospital, leaving the area "last to get and first to lose".

At a financial planning meeting, Mr McNulty acknowledged the difficult position the Trust board had been placed in due to the lack of an agreed Executive budget, but highlighted significant concerns for local services.

He said the uncertainty had brought instability for long-term financial planning and raised concerns over the delivery of the long-delayed Newry Community Treatment Centre, job security for healthcare workers including porters, and the allocation of care packages.

The MLA noted the announcement of a 12 per cent cut across Trusts over the next three years, which he said had alarmed health unions about potential job losses, particularly for cleaning staff and porters. He described these workers as vital to hospital hygiene and patient safety.

Mr McNulty said there were already funding deficits in the Daisy Hill Hospital estate affecting maintenance and project delivery, and further cuts could disrupt patient care.

He pointed out that the Newry Community Treatment Centre had been promised over a decade ago but remained on hold pending the Department's 10-year capital plan. Similar facilities in Banbridge and Lisburn have been operational for years, while Newry's has not been delivered.

The MLA asked what assurances could be given to healthcare workers about job protection and to patients and families about the quality of care. He said his office was inundated with families unable to secure care packages for loved ones and asked how the Trust would ensure cuts did not reduce care package provision.

He paid tribute to healthcare workers for their continued compassion and skill under pressure.

The Trust chief executive is expected to respond to Mr McNulty's concerns in a separate item on the financial plan.

The Trust's Executive Director of Finance, Procurement and Estates, Catherine Marks, outlined the savings plan to board members. The Trust is required to deliver savings equivalent to 4% of its annual budget allocation for 2026-27, which represents a total savings requirement of £47.5 million, including an underlying deficit of £5.8 million brought forward from last year.

Ms Marks said the Trust has identified £42.4 million in savings, which is equivalent to 3.6% of its budget, leaving a gap of £5.1 million. She said the figure represents the "maximum credible and deliverable level of savings" within the financial year, and that further cuts would likely impact service provision, staffing levels or patient access.

The plan includes reductions in temporary staffing of £7.8 million, workforce and vacancy control measures of £7.4 million, facilities management savings of £4.5 million, corporate savings of £8.1 million, and operational efficiencies of £4.2 million.

Trust board chair Eileen Mullan expressed support for the plan, saying the Trust fully supports the Department of Health's reset plan. She acknowledged the challenges of delivering three years of 4% efficiency savings and noted the Department's financial pressures of approximately £800 million.

Trade union Unison criticised the proposals, saying the Trust had not consulted effectively with unions and the public. Union representative Deborah Yapicioz said the cuts would impact patients, service users and the workforce, and called for full disclosure of information. She said the union was concerned that vacancy control measures would increase pressure on remaining staff.