Margaret Taylor fears the new hospital may be shelved.THE planned new Devizes Hospital is under threat as the Kennet and North Wiltshire Primary Care Trust has revealed it is facing an overspend this year of £6million.

The project to build a new hospital on a nine-acre site on trust owned land at Green Lane is months behind schedule as health chiefs have still not agreed what services the new hospital should have.

This week it was revealed that the trust, together with the West Wiltshire Primary Care Trust, was undertaking a strategic review of all its services including community hospitals, raising fears that the proposed £10million new hospital for Devizes might not be built.

At a meeting of Kennet and North Wiltshire Primary Care Trust on Tuesday, Paula Winchcombe, a Kennet district councillor and a member of the Devizes Hospital project board, failed to receive an assurance that the planned new hospital would go ahead.

Stephen Golledge, acting chief executive of both trusts, said: "The boards of both PCTs are going to be developing a strategic statement about services generally, not just community hospitals.

"We hope to have that in early summer. It's right that the work going on in Devizes should continue but as a newcomer to the area it would look a bit odd to me to plan the future of Devizes Hospital without considering the future of Melksham.

"Discussions about new health facilities in Devizes are certainly continuing but we need to clarify the entire relationship with Melksham before bringing forward a business case. Precisely what the nature of the health facilities in Devizes would be in the future is not known.

"Both PCTs are currently spending more money than we receive. Any proposals we bring forward will be about saving money. That might mean spending less money in district hospital settings and more money in the community."

The planned new hospital for Devizes has been talked about for 20 years.

The trust, which came into existence in 2002, committed itself to building a new hospital at Green Lane despite having to cut £10million over three years.

Following the departure of Barbara Smith as chief executive in September last year, the project has not progressed to the timetable originally agreed.

The main sticking point has been deciding if a diagnostic and treatment centre, which includes X-ray facilities, should be located in Devizes or Melksham.

Meanwhile work is underway on the £9.8million Savernake Hospital in Marlborough, which is due to open next year, and an outline planning application for a new hospital in Malmesbury has been submitted to the district council planners.

The strategic health authority will be asked to approve the new hospital in the next few months.

Devizes Mayor Margaret Taylor, who is chairman of DASH2 (Devizes Action to Save Our Hospital), was at the trust meeting. She said afterwards: "It seems Devizes is in competition with Melksham and yet for the last two years the trust has consulted with the public about its proposals to provide a new hospital in Devizes.

"Devizes not only needs but deserves a hospital. The PCT says people don't mind travelling for services but Devizes people will certainly mind travelling for everything."

Devizes MP Michael Ancram backed the Gazette's renewed campaign for a new hospital to be built in Devizes.

He said: "The viability and future of Devizes Hospital, which we have been promised, should not be jeopardised by the current deficit at the PCT.

"I will continue to fight for a new hospital for Devizes."

Mr Golledge said a financial recovery plan would be presented to the board next month, which would aim to make savings of £13million across both trust areas.

Mr Golledge also said the proceeds of any sale of Southgate House, the headquarters of the trust, would have to be ploughed back into services.

The building stands on a 3.5 acre site and could fetch £3million.

A new hospital at Green Lane would be paid for by the proceeds of the sale of the existing hospital site in Commercial Road and the Devizes Family Health Centre site in New Park Street.

These sites could be sold for a combined £5million.

The remainder of the cost of the new hospital would have to be funded by a Private Finance Initiative.