The NHS is reportedly set to reveal a deficit of £1.5bn with fears that some trust might run out of money to pay wages.

Jim Mackey, chief executive of NHS Improvement, the new regulator of hospitals, told a conference at the King’s Fund health think-tank that health service efficiency targets were “unachieveable and, frankly, bloody stupid”, The Daily Telegraph reported.

Mr Mackey said the deficit figures, due to be published on Friday, were “awful”.

In addition to the current deficit of £1.5bn, they are expected to estimate that it will reach £2bn by the end of the financial year.

Professor John Appleby, chief economist at the King's Fund said hospitals across the country were not coping with the financial crisis.

“We have never seen anything on this scale before. There is a real danger that over the next year trusts will run out of cash to pay staff,” he said.

“This is everybody - even the best managed hospitals are in this situation, it is not something that any trust has been able to resolve.”