Croydon’s health services is set to benefit from an extra £27.8m in Government cash – but will still be £25m short on what is needed.

NHS England had been planning to give the Croydon Clinical Commissioning Group an extra £13.2m to spend across the borough for the financial year 2015-16.

After a review of the needs of CCGs across the country it has decided to up the increase from 3.25 per cent to 6.94 per cent, the 17th largest of the 211 CCGs in the country.

It means the funding for the year will now be £434,164,000.

However, this is still £25m below the level NHS England believes is needed.

The predicted shortfall is less than in 2013-14, when it was estimated to be about £46m, and less than the £40m it was this financial year.

It is not yet known whether there will be any extra cash available to help bridge the remaining gap.

Tony Brzezicki, GP chairman of Croydon CCG, said: “While this is welcome news it is important to note this funding will have constraints that will be outlined in national guidance.

“We are already aware that the funds will need to be deployed to match increases to the national tariffs which set the costs we pay for treatments, provide the improvements required to meet mental health targets, and to manage Croydon’s existing £17m deficit position.

“The allocation for 2015-16 also includes funding to address pressure on emergency services which this year was provided separately.

“We believe that this inclusion of winter pressure funds in our allocation will allow us to plan better and improve the delivery of services for the 2015-16 winter period.

“The CCG awaits the position on allocations for 2016-17 and 2017-18 to understand the trajectory for bridging the £25m funding shortfall.”

Croydon Central MP Gavin Barwell welcomed the news.

He said: “Croydon’s increase is well above the rate of inflation and one of the highest increases in London, which is clearly great news.

“It’s come about because the Government is changing the way in which the NHS budget is allocated to different parts of the country.

"This year’s increase won’t make the system completely fair, but it is a big step in the right direction.”