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REVEALED: Hospital delay to cost up to £125m

Building work on the Midland Metropolitan Hospital has been on hold since the collapse of Wolverhampton-based Carillion in January

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The Midland Metropolitan Hospital

The West Midlands new super hospital is up to £125 million over budget following the collapse of Carillion.

Work on the Midland Metropolitan Hospital in Smethwick has been put on hold since the Wolverhampton-based construction giant went into liquidation in January.

And the delay has proved to be costly.

Toby Lewis, the chief executive of the Sandwell and West Birmingham NHS Trust, said: "We are expecting that to finish this hospital it will cost about £100m to £125m more than had originally been anticipated."

The region's Mayor, Andy Street, wants to get the job up and running, and has revealed that Swedish firm Skanska has been identified as the preferred new contractor. He has written to Cabinet Office Minster David Lidington calling for government support to get workers back on the site.

The 669-bed hospital had already been delayed and was due to open in 2019, but that date has been pushed back by at least a year.

In his letter Mr Street describes the project as being ‘of critical importance’.

“The hospital company, which is leading the project under a PF2 contract, has successfully identified a preferred replacement contractor, Skanska, to start an early works contract which will help avoid further delays to the project,” he wrote.

“I acknowledge there are other alternatives, which may be preferred, for example a wholesale re-procurement of the PF2 contract, or self-delivery under another form by the Trust.

“However, I share some of the Trust’s concerns about the time this would take. This would cause a potential delay to moving to the new site, with inevitable knock-on for medical services. I believe we need to act quickly and ensure the people of Sandwell and West Birmingham have the hospital facilities they deserve,” he added.

Theresa May discussed the hospital in the House of Commons on Wednesday. She said: “We recognise the level of concern that is being raised on this issue and we are working to resolve it.”