The verdict to scrap a £464m hospital that would have opened plans for a first-rate pharmaceutical and healthcare group at Wynyard was criticized today as totally unsuccessful for the building industry and the broader economy, as well.

The new North Tees Hospital, the foremost main capital project in 20 years to be constructed outside the Private Finance Initiative (PFI) system, where the Government scrounges funds from the private sector now to erect public infrastructure developments in response for part-privatization later, was cut yesterday as a part of the Coalition’s £2billion beacon of plans authorized in the failing months of Labor.

Paradoxically, the hospital might have stood a better likelihood of survival, if it been decided under such a capital backing collaboration.

Instead, the entire cost was to roll out from the Department of Health’s already overextended budget.

Whilst developers were anticipating postponements, Health Secretary, Andrew Lansley’s verdict to axe the proposal came as a surprise to landlords of the 750-acre Wynyard location, which was to have been home to a revolutionary work/life community comprising up to 2,000 environment friendly houses and a health group devised to lure some of the globe’s principal healthcare suppliers.

It is understood that the Primary Health Trust had already begun discussions with key industry leaders on utilizing the hospital as a hub for research and growth.