Public funding pledged to complete PF2 hospital

The new hospital was scheduled to open in October but this will now be in 2022. It was being funded under a PF2 private finance agreement, but Sandwell and West Birmingham Hospitals NHS Trust had to rethink after the construction firm went into liquidation.

In August, the trust board confirmed it would opt for a publicly funded route, approved by the Department of Health and Social Care and the Treasury.

It has been reported that the government will now provide £300m to complete the building.

In January, before it collapsed, Carillion asked the government for up to £125m to complete the build in exchange for an equity stake, according to the National Audit Office.

Health minister Stephen Barclay said: ‘By taking this bold step, we are not only giving patients in Sandwell and west Birmingham world-class NHS facilities on their doorstep, but also showing our determination to build an NHS fit for the future.’

Construction at the other NHS part-privately financed building contract held by Carillion – Royal Liverpool and Broadgreen NHS Trust – was also halted in January. The trust said construction was nearer completion than at the Midlands trusts.

Discussions on restarting construction were ongoing and all parties wanted to see the new hospital completed as soon as possible, the trust said.