AIREDALE NHS Trust looks set to break even by the end of the financial year - despite a forecasted £2.1 million deficit.

But the news does not safeguard the future of services at Skipton Hospital which are still under review.

The trust has identified savings from a number of departments - and has dipped into its capital savings to solve its financial crisis.

But finance director Janet Crouch has warned the problems have not gone away and using non-recurrent money is not a long-term solution.

"This is an amazing achievement given the pressure the budgets are under this year," she said.

She added that £400,000 had been taken from capital funding - money used for big projects - to clear some of the expected deficit.

Appointments for consultant positions have reduced over-time and locum costs and funding to reduce waiting times has also cleared some of the problems.

But, she added: "The underlying deficit is still there and will be carried on next year. It doesn't mean we can let slip the plans for cost improvement."

Medical director Dr Paul Godwin said a lot of the problems had been caused by the re-organisation of the NHS.

"It has made the problems even greater than was necessary. If we have balanced our books, it is in the face of great adversity."

The future of Skipton Hospital is still in the balance after members heard that a consultation document, expected to be produced this week, had been delayed.

A joint statement from Craven, Harrogate and Rural District PCT, Airedale PCT and Airedale NHS Trust stated: "We need to find a good long term solution. Our discussions are still ongoing and we have not reached the stage where we are able to offer a consultation with the public."