Gordon Brown quietly slashed by a third this year’s hospital building and equipment budget in one of his last acts as chancellor.

Prompted by the tightness of the public finances, the new prime minister, who has placed the NHS as his “immediate priority”, cut the capital budget of the English NHS for 2007-08 from £6.2bn to £4.2bn. The move could delay the government’s hospital building and reconfiguration programme in England.