TWO struggling NHS boards are still facing “significant” challenges, Scotland’s public spending watchdog has warned.

NHS Tayside had to be bailed out with £17.6 million of Scottish Government cash in 2018-19.

Meanwhile NHS Highland, which is also the subject of bullying allegations, required £18m of brokerage funding.

Auditor General Caroline Gardner said: “The future is challenging for NHS Tayside. Effective and stable leadership will be critical in bringing about long-term service transformation.”

Gardner said NHS Highland’s attempt to break even by 2021-22 “appears unrealistic”.

A new Audit Scotland report noted that it had identified £50.5m of savings as being required in 2018-19, but it had only achieved planned savings of £26.6m.