Multi-million pound debts in the local health service are even higher than predicted, it emerged.

Selby and York Primary Care Trust (PCT) revealed it is £600,000 deeper in the red than the £23.7 million originally expected.

Today, York MP Hugh Bayley said he planned to raise the issue of overspending by health chiefs in the House of Commons.

There are already severe concerns about possible pay cuts and job losses among health professionals, who reacted angrily to the rising debt.

Sheenagh Powell, acting director of finance at the trust, said the deficit was higher because the PCT was receiving £668,000 less in dental funding than expected from the Department of Health.

"We are working with our colleagues at the Strategic Health Authority and the Department of Health to understand why this funding is lower than expected, and to see if any additional monies are due to us," she said.

She stressed this might mean debt fell again before the end of the financial year.

Mr Bayley said poor management was to blame for overspending, and hoped health bosses were now taking the problem seriously.

He said: "I am planning to speak in Parliament on Monday, to ask the Secretary of State for Health if some lessons have been learned from this.

"The debt is not due to a lack of funding from the Government, because that has doubled. It's a question of how it's been used."

The Department of Health is already slapping a £1.3 million fine on the trust because of the budget shortfall, and York Hospital's bid for foundation status could be delayed as a result.

Vale of York MP Anne McIntosh said the PCT was "running away with itself", and building up a deficit that could increase still further.

"It's very worrying for staff morale," she said. "One of the problems is the number of employees has increased significantly since 1997, but most of these positions have been in management. There is now one manager for every two GPs.

"But there is a four to six month delay in carrying out operations."

Health staff already fear widespread cuts as PCT directors try to claw back the massive budget shortfall over the coming year.

One York GP, who did not want to be named, said the financial problems went back a long way.

"Most sections of the local health service are expecting a nil increase in their budget next year, and probably a decrease," he said.

But the PCT claims it will make savings without "reducing the quality of care" to patients. Ms Powell said the trust hoped to "report an improved predicted end of year financial figure" to its board meeting on Tuesday.

Updated: 10:02 Saturday, March 18, 2006