Parliament's spending watchdog has criticised the Department of Health (DH) for its failure to explain what would happen if a hospital trust went bankrupt – amid concerns over the long-term affordability of NHS private finance deals.

In a report issued today into the future sustainability of NHS finances, the Public Accounts Committee (PAC) reveals in 21 trusts and foundation trusts and three primary care trusts held a total deficit of £356m in 2011/12.