HEALTH bosses working on a plan to save £3 million are warning of tough decisions ahead.

There may have to be cuts in services - and even job losses - if a satisfactory recovery plan cannot be agreed.

The alert was sounded by Morecambe Bay Primary Care Trust, which is looking to deal with a projected £3 million overspend.

Reasons for the shortfall include historical debt and the hike in cost of providing a service across a wide rural area.

Chief executive Leigh Griffin insists that the PCT will do everything it can to safeguard both services and jobs.

"What we want to do is everything possible to either avoid or minimise any service or staffing reductions," he says.

But it will be up to the Trust's board to decide whether to approve any recovery plan which officials can come up with.

Dr Griffin says that the board knew at the beginning of the financial year that it would have to find savings of £8 million to deal with historical levels of debt, and the high costs of providing health services in a rural area.

In addition, national changes such as new GP contracts and the cost of running the 'Baycall' out-of-hours service had to be catered for.

He adds that measures already in place to deal with the £8 million shortfall have been effective - but there is still more to be done.