Health Secretary Alan Johnson MP has announced NHS North Yorkshire and York will be handed £2,215 million during the next two years – an increase of 11.6 per cent on the previous figure.

The windfall comes as it emerged the stricken trust is still £18 million in the red as it battles to be debt-free by the end of the next financial year in March.

Trust interim chief executive Jayne Brown said: "While this extra funding will help meet rising costs of providing healthcare services, we're committed to investing funds in the best possible way to meet the needs of our population.

"This will include delivering against the eight key areas outlined in our five-year strategic commissioning plan."

The document includes further investment to bring care closer to people's homes, improving the health of those most 'at risk', targeting prevention, improving mental health services and commissioning care that gives young people the best start in life.

Mrs Brown, who took over from Janet Soo-Chung earlier this year, added: "We will continue to work closely with all stakeholders to ensure the services we commission are able to meet the ever-changing health needs of our local community."

The allocations for NHS North Yorkshire and York – formerly North Yorkshire and York PCT – are part of £164 billion grants awarded nationally by Mr Johnson.

The trust will receive £1,139 million during 2009-10, compared to £999 million for 2008-9.