THE Royal Bolton Hospital is on a "knife edge" and could lose its only star, the hospital's finance director has said.

Colin Dunn warned that the hospital could become a zero star trust because of its continuing financial problems.

It is forecast the hospital will have a £3 million deficit by the end of the financial year on April 1 and will have to save £7 million during the next financial year.

The accident and emergency department is also struggling to meet its target of seeing, treating and either admitting or discharging patients within four hours.

Both are crucial to the star ratings, which are next awarded by the Audit Commission in December.

Mr Dunn said: 'We are on a knife edge between a one-star and no-star trust and if we end up with no stars, it could become a big issue as to how we are perceived. It is clear some services are rated very highly but it is the finance and the accident and emergency figures which are a problem."