Plans for a proposed £10 million same-day surgery unit in Hinckley are set to be scrapped after NHS leaders concluded the project is no longer financially viable or sustainable.
The facility had been earmarked for Mount Road and was intended to replace the 125-year-old Hinckley and District Hospital. Planning permission was granted last year by Hinckley and Bosworth Borough Council (HBBC).
However, documents obtained by the Local Democracy Reporting Service reveal that NHS leaders now believe the scheme is “no longer viable” due to rising construction costs, wider financial pressures, and the identification of alternative surgical capacity elsewhere in the system.
Rising Costs and Funding Pressures
According to the papers, the project would require an additional £2 million on top of its original £10 million budget. Even if the extra funding could be secured, health chiefs argue that projected patient demand — both now and in the future — would not justify the investment, describing it as “no longer an efficient and sustainable use of resources”.
There have also been complications surrounding the demolition of the former hospital building, including debate over its historic significance, delays in submitting planning applications, ongoing cost pressures, and funding that is due to expire in March.
What Was Planned
The new day case unit was expected to treat around 2,000 patients per year — double the number currently seen at the existing hospital. Services would have included breast care, general surgery, gynaecology, ophthalmology, orthopaedics, pain management and plastic surgery.
Board members at the Leicester, Leicestershire and Rutland Integrated Care Board (LLR ICB) are due to consider a recommendation to formally cancel the scheme at a meeting on February 19.
NHS leaders have also acknowledged that, should the project be scrapped, alternative plans for the site would need to be explored.
Political Reaction
Hinckley MP Luke Evans described the potential cancellation as a “huge concern”, blaming both HBBC and NHS leaders for delays which he said had put the scheme in jeopardy. He raised the matter in Parliament and confirmed he has written to the Health Secretary.
Dr Evans said:
“We need a hospital, not a museum. The building is no longer in use and stands derelict. With extra costs due to delays, constraints on NHS capital spending and changing priorities, the Day Case Unit now looks likely to be cancelled.”
He added that he would continue to hold both the council and the NHS to account if the scheme is formally withdrawn.
Council leader Stuart Bray has strongly defended the authority’s position, insisting the town urgently needs improved healthcare facilities. He criticised Dr Evans’ comments and said the council had explored the possibility of offering a £2 million budget loan to help bridge the funding gap.
Cllr Bray also referenced correspondence sent to Health Secretary Wes Streeting, requesting that the design of the new facility be reconsidered to better incorporate the Victorian heritage elements of the existing site.
He said:
“We absolutely need this facility in the town. If there was a straight choice between having the day care unit delivered or not, we would have chosen delivery.”
NHS Response
A spokesperson for the LLR ICB said the board would consider cancelling the project on the basis that, eight years after it was first approved, “the circumstances and wider context have changed” to the point where the scheme is no longer viable.
They highlighted recent healthcare investment in Hinckley, including the £24.6 million community diagnostic centre, but acknowledged that cancellation would be disappointing for local residents.
The ICB added it remains committed to working with partners to explore alternative options for the Mount Road site.
About the Author
