The first phase of the transformation of Wolverhampton’s New Cross Hospital has won approval from planners.

A new pathology unit, new catering facilities and a new emergency centre totalling £100 million of investment will be created in the first phase of an overhaul set to last seven years.

It marks the first significant step in a complete overhaul of the hospital which will ultimately see £400 million spent.

The hospital also won outline approval for 102 new homes in a special zone accessed off Parkhouse Avenue, which will be made up of a mix of one, two and three-bedroom flats plus detached and semi-detached homes.

Once a detailed application has been submitted for the design of the homes, the money recouped from the development will go towards the hospital transformation.

Outline approval was also granted for the principle of two multi-storey car parks on the site.

The hospital will be asked to return later in the year to submitted detailed plans for the car park and homes. David Loughton, chief executive of the Royal Wolverhampton NHS Hospitals Trust, pledged: “We will work closely with officers and be very sensitive about all aspects of the development.”