Bradford's hospitals have been given a clean bill of health by inspectors.

Despite escalating pressures, Bradford Hospitals NHS Trust, which runs Bradford Royal Infirmary and St Luke's Hospital in the city, is meeting all its financial and performance targets set by the Department of Health, according to the Audit Commission.

They found the Trust had adequate levels of medical staff, was on track to meet inpatient and outpatient target waiting times, A&E was performing "at levels slightly above the national target" and that "significant progress" had been made to improve patients' experience of visiting the hospitals.

However, areas of concern included a backlog of work to maintain the buildings and difficulties in getting funding for cancer services to improve the time patients are seen. Auditors also highlighted a shortfall in funding for next year of £3.25 million.

Growing financial pressures, caused by increased spending on temporary doctors, the cost of overseas nurse recruitment and the increased cost of drugs and blood, means the Trust must find the extra cash to continue to meet its financial targets next year.

In their report, auditors noted: "While the Trust has plans to bridge this gap, we share its concerns that the scale of savings required presents a significant challenge."

A spokesman for the Trust, said: "There is growing financial pressures and the Trust will have to look at savings to meet targets next year, and there is a need to keep a close eye on savings."

Savings will come from getting increased value for money for the drugs it buys and by investigating additional funding streams such as money for waiting list initiatives.

Bosses have also submitted a business plan to West Yorkshire Strategic Health Authority for more money to provide extra wards and theatres.

A spokesman said: "We welcome the findings of this comprehensive report which examines our success in achieving good value for money and demonstrates again comparable hospitals require more money to provide the same level of services.

"The report scrutinised our accounts and activities, recognising good performance and highlighting scope for improvement.

"It has made some constructive comments about how we can build on the progress that is being made and we look forward to examining these suggestions in greater detail."