Maidstone and Tunbridge Wells NHS Trust (MTW) has been placed into Financial Special Measures by a health watchdog over its forecast £23 million deficit.

The provider, which runs hospitals in Maidstone and Pembury, is among five trusts across England deemed to lack ‘financial discipline’ by NHS Improvement (NHSI)

The measures mean MTW will be forced to agree a plan to rapidly improve its financial position, led by a director appointed by NHSI who will sit on the trust’s board.

This director and the specialist teams they will be overseeing will have the power to remove autonomy over key spending decisions and even replace board members.

Jim Mackey, Chief Executive at NHS Improvement said:“This suite of measures will help ensure that the providers facing the greatest financial challenges are supported to bring about rapid financial recovery, while maintaining or improving quality where necessary.

Simon Stevens, Chief Executive of NHS England, added:“Today's 'reset' sets out the agreed legal responsibilities of individual NHS bodies to live within the funding Parliament has decided should be available to the NHS this year."

This plan will help restore financial discipline and ensure ongoing financial sustainability in the NHS.”

Other trusts which have been targeted are Barts Health NHS Trust, Croydon Health Services NHS Trust, Norfolk and Norwich University Hospitals NHS Foundation Trust and North Bristol NHS Trust.

All of these trusts, including MTW, have either not agreed budget limits with NHSI despite set to accrue massive funding gaps or have because they have already signed up to a system of budget control but a failing to meet targets.

Performance could determine whether trusts gain access to a £1.8 billion Sustainability Fund pot put set aside by the government

Glenn Douglas, MTW chief executive, said: “We have a long and strong track record of making financial efficiencies and improving patient care.

"I am confident we can use this opportunity positively to renew and strengthen our focus on more closely providing our high-quality services within our financial means."

MTW currently has a lower forecasted deficit than other trusts in Kent. For 2015/16 Medway Foundation Trust had a funding gap of more than £52m and more than £30m for East Kent Hospitals University Foundation Trust.