The chief executive of the borough’s hospital trust held talks with staff to discuss its �50million debt for 2011/12 and urgent need for savings.

Averil Dongworth, head of Barking, Havering and Redbridge University Hospitals NHS Trust (BHRUT), spoke to 200 staff members from King George, Barley Lane, Goodmayes and Queen’s, Romford, earlier this month about the trust having to make �23million of savings this financial year alone.

The meeting came shortly before the government announced South London Healthcare NHS trust would be put into administration.

A spokesman said the talk was about “developing a plan for long term clinical and financial viability”.

She added: “Because spending on staff is such a large proportion of our spending, we will look to make savings there. This doesn’t necessarily mean redundancies.

“Our first priority in making efficiency savings will be to cut spending on bank and agency staff and making better use of permanent staff, because we know this is both less expensive and also provides better quality care.”