According to a study by the Guardian and the thinktank Civitas, one in three NHS primary healthcare trusts are facing problems due to budget deficits that cuts number of surgical operations.

Casualty departments are also suffering as primary care trust's budget deficits. Analysts reveal that the axe will result in an NHS loss of £20 billion by 2013, which will increase to £38 billion by 2016.

NHS primary health trusts said that the budget deficits are due to increased demand because of the disease swine flu.

"If financial control cannot be exercised in times of plenty, it does not bode well for times of famine. With billions to effectively be cut from the NHS we are looking at huge productivity improvements to maintain today's standards. Prudent organizations would be looking to set money aside to invest for such times", said James Gubb, Head of Health Policy at Civitas.

It was also found that health service overspend would strike £130 million.