DORSET County Hospital has confirmed it is planning for a deficit of £3.5million in the current year as scale of the financial crisis facing NHS hospitals nationally is revealed.

Figures released to day show NHS trusts in England racked up a deficit approaching £1 billion in the first three months of the financial year.

The statistics for April to June showed NHS foundation trusts had a deficit of £445 million, while other NHS trusts ended the first quarter of the year £485 million in deficit.

In Dorset, the Clinical Commissioning Group's Clinical Services Review is intended over the next few years to reduce the cost of healthcare provision, which otherwise is expected to lead to a county-wide funding shortfall of more than £200 million by 2021.

The figures provided by foundation trust regulator Monitor - as well as a study of non-foundation trusts by the Trust Development Authority - have been described as the "worst" financial position "in a generation".

Some 118 of 151 foundation trusts and 72 of 90 NHS trusts in England were in deficit, and 75 per cent of those acute hospital or specialist trusts.

The main cause of overspend among foundation trusts was higher than expected costs for staff pay, with an "over-reliance" on expensive agency staff, Monitor said.

The NHS has been paying agencies up to £3,500 per shift for doctors, and the total bill for management consultants was more than £600 million last year.

Last week the Echo revealed that Dorset County Hospital was facing a nursing recruitment crisis and had spent £1million on agency costs for nursing staff in the first six month of 2015, equating to more than £5,800 per day.

Health Secretary Jeremy Hunt has announced a cap on the use of expensive agency staff, which currently cost the NHS more than £3 billion.

Dr David Bennett, chief executive at Monitor, said: "Trusts are working hard to provide patients with quality care.

"However, today's figures reiterate that the sector is under massive pressure and must change to counter it.

"The NHS simply can no longer afford operationally and financially to operate in the way it has been and must act now to deliver the substantial efficiency gains required to ensure patients get the services they need."

Last year, NHS trusts and foundation trusts overspent by £820 million, and the total deficit for this financial year is predicted to top £2 billion.