HIGH-flying health boss Michael Orr is quitting early after his plan to slash £2.2m from his budget was thrown out.

In a shock move, the chief executive of the Oxfordshire Mental Healthcare NHS Trust will go on New Year's Eve - several months earlier than expected.

Dr Orr, who earned £109,000 last year, wanted to wipe out the trust's £2.2m deficit by April 2000 - a plan which the health authority voiced its doubts about just a few days ago.

A source close to the authority said the resignation came during a time of "considerable turmoil" about the trust's recovery plan.

He added: "The health authority was not satisfied with what the mental health unit had done."

Health authority chief executive Michael Taylor said: "There are many pressures in the trust and Dr Orr has taken a brave and honourable decision.

"We have had various drafts which the health authority was unable to accept and we have asked trust colleagues to revisit some of the proposals.

"We felt some of the proposals were really geared to the sharp end of the service. There will be some impact on jobs. Clearly we wish to minimise redundancies and make these savings through the non-filling of vacancies." The trust controls Oxford's Warneford Hospital, Littlemore mental health centre and the Park Hospital for children, as well as the Elms Clinic in Banbury and community bases in Abingdon, Witney and Thame. Recently, Dr Orr presided over the closure of the Chilton Clinic to save £300,000. More cuts will be necessary if the trust is to meets its budget and job losses have not been ruled out.

Dr Orr, who has been at the trust for 13 years, admitted the plan had been criticised in the past but added: "I think I would have preferred us not to have a deficit in the first place."

He said he still wanted to see the plan - which he has spent eight months drafting - agreed and put out to public consultation before he left.

But the senior consultant psychiatrist will not see his plan put into practice. Originally he planned to leave next summer to return to his clinical work, but that date has now been brought forward.

Dr Orr said he hoped the plan would be agreed by the end of the month.

Steve Akers, spokesman for the health service union Unison, said: "We are extremely concerned about the resignation.

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