A stuggling hospital trust could be more than £17 million in the red by the end of March.

Brighton and Sussex University Hospitals NHS Trust's financial position is becoming increasingly precarious as it struggles to make £34 million worth of savings out of a £310 million budget.

The threat of jobs losses is looming large and unless a solution can be found, the trust will be in the embarrassing position of running out of cash in the new year.

Trust director of finance David Dumigan said there were serious problems ahead but staff pay had been secured and there was no risk of workers being paid late.

The trust is in discussions with Surrey and Sussex Strategic Health Authority (SHA) to try and find a solution to the growing problem.

It has a statutory duty to break even financially and must also meet Government targets for waiting times and operations.

However, the trust is still dealing with an increasing number of patients but has not been given enough funding to pay for the services it provides.

Mr Dumigan said: "We are in an uncomfortable position at the moment and it is a difficult time."

The trust has called in advisers KPMG to help it try and find a way to get its finances back on track and has drawn up a three-year recovery plan, which it hopes will be accepted by the SHA.

The trust ended the last financial year £10 million over budget and was given a zero rating in the Government's annual star ratings this year.

One of the key targets it missed was the need to break even.