York and Scarborough Teaching Hospitals Foundation Trust is facing a £28.5m deficit this financial year while Harrogate and District NHS Foundation Trust reported a £17.8m deficit at the end of December, £15m away from plan.

A spokesperson for York and Scarborough Teaching Hospitals NHS Foundation Trust said: ‘We've appointed KPMG to undertake an independent financial diagnostic and governance review. This will look at our income, expenditure and cost drivers, and assess the strength of our financial controls and cost improvement processes.

‘The work has been jointly procured with Harrogate and District NHS Foundation Trust to ensure best value and is expected to take around 12 weeks. KPMG will also support us to validate our current efficiency plans and help shape the early development of further transformation and improvement opportunities. This work will strengthen our financial oversight and support the delivery of sustainable, high-quality services.'