Hospitals in Birmingham and Solihull faced an additional £6 million in staffing expenses due to strike action by resident doctors in late 2025. This surge in costs contributed to a widening budget deficit at the University Hospitals Birmingham (UHB) NHS Foundation Trust, underscoring ongoing financial challenges.
During a January 29 board meeting, Julian Miller, UHB’s Chief Financial Officer, reported that by December—the ninth month of the financial year—the trust’s cumulative deficit had reached £36.8 million, exceeding the planned shortfall by more than £25 million.
Miller identified staff costs as the primary factor behind this adverse variance. Notably, £6.2 million of the extra expenses were attributed directly to hiring bank staff during the doctors’ industrial action. The strikes occurred from December 17 to 22, following a breakdown in pay negotiations.
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The British Medical Association (BMA) initiated the strikes after the government offered a 5.4% pay rise, which the BMA deemed insufficient compared to their 29.2% demand aimed at rectifying years of stagnant wages.
Despite efforts to maintain most hospital services during the five-day work stoppage, the financial impact was significant. Miller detailed that substantive staffing costs overspent by £17.5 million against the plan, while bank staff expenditure was £19.9 million over budget—primarily driven by strike-related cover.
Though concerns remain about controlling bank staff costs, there was some positive news regarding agency staff spending, which was reported to be £1.3 million below projections at £13.3 million year to date.
Overall, the resident doctors’ industrial action has not only disrupted hospital operations temporarily but also imposed a considerable financial burden on healthcare providers in the region.