Budget cuts force NHS to abandon new polyclinic after spending £3 million

The health service will lose millions of pounds by stopping projects
12 April 2012

The NHS is abandoning building projects in the face of budget cuts, the Evening Standard has learned.

The health service will lose millions of pounds by stopping projects. Plans for a polyclinic in south-west London have already been torn up at a cost of £3 million because of fears over the future of NHS finance. Critics said it was the first sign of the credit crunch's impact on the NHS.

Fears that clinical services will be cut escalated after Andy Burnham, the Health Secretary, admitted the NHS had to save up to £20 billion. Shadow health secretary Andrew Lansley has promised to slash £4 billion from the NHS budget by targeting bureaucracy if the Tories win the general election.

Politicians are furious at NHS Wandsworth abandoning plans to turn the disused Putney hospital, which has been empty since 1998, into a polyclinic. Health bosses said the decision came "mainly due to the financial climate and possible reductions in funding".

Geoff Martin, of campaign group London Health Emergency, said: "This is the first time that key developments are in the front line of cuts. Polyclinics have been a political priority — if they cut them it leaves huge question marks over other services."

Ann Radmore, chief executive of NHS Wandsworth, said: "The NHS will not escape the effects of the financial downturn. It is essential that those managing healthcare locally make the tough decisions which will result in appropriate and affordable solutions."

Wandsworth council said the decision would cost the taxpayer £3 million — the price of security, maintaining the building and drawing redevelopment plans since the hospital shut. It fears the land will be sold to developers.

Edward Lister, leader of the council, said: "The real story here is that the serious financial problems facing the NHS in London mean that even if the new clinics and GP practices were built there is no money to run the services.

"What is likely to happen is that the PCT will sell the site. Unfortunately all the money raised will almost certainly end up in the Treasury's coffers."

The Putney scheme was granted planning permission in 2006. The building work would have been paid for by the construction of 24 flats on the site.

Eight polyclinics have opened in the capital since April, and every primary care trust is expected to have one by 2013. NHS London said: "The roll-out of polyclinics is on track."

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