A health authority is at risk of going £3 million over budget at the end of the next financial year.

East Sussex, Brighton and Hove Health Authority is hopeful it will be able to make savings without affecting patient services but the board is being asked to consider what money-saving steps it may be forced to take if necessary.

Part of the problem is caused by bed blocking, where patients have to stay in hospital because there are not enough nursing home places.

Hospitals have therefore been spending more on patients than originally planned and costs are mounting.

Other problems have been caused by overspending in out-of-area referrals in specialist areas such as mental health where demand has again been higher than expected.

Roy Jackson, the authority's acting finance director, said: "The figure of £3 million is only a projection and there are no guarantees about what is going to happen.

"It is a matter of looking at the situation now to see what can be done should the need arise.

"Even if the problems do not crystallise to become actual cost pressures there is enough basis for members of the board to consider instructing the authority to institute financial recovery action now."