A decision to put plans for a new hospital in Sussex on hold because of money shortages has been criticised.

Arun District Council leader Norman Dingemans says the delay on starting building work on the Arun Community Hospital in Littlehampton is unfair.

The council, along with Littlehampton Town Council, is lobbying local MPs and Health Secretary Patricia Hewitt to get the decision reversed.

The £8 million hospital was due to open next year but building work is now not expected to start until the autumn at the very earliest.

Preparation work had already begun, with the former Littlehampton Hospital on the same site in Fitzalan Road demolished at the end of last year to make way for the new development.

Surrey and Sussex Strategic Health Authority (SHA) put a halt to the plans because of concerns the costs of establishing and running the hospital could not be met because of the serious financial pressures faced by the NHS in both counties.

This is despite the fact that Adur, Arun and Worthing Primary Care Trust (PCT), which is responsible for managing the new hospital and commissioning services, has managed to break even this year.

Coun Dingemans said: "We had reached a position where the development was ready to start and everyone - including local GPs and their patients - was making plans around that expectation. Now, because of the financial difficulties faced by the SHA, the plans have been put on hold.

"In contrast the PCT has managed to provide an excellent service while at the same time balancing its books.

"It now, however, finds itself in the unfortunate position of having to sacrifice its plans at this last-minute stage, just so the SHA can give a financial boost to some of its over-spending PCTs at the expense of health provision for Arun residents.

"This decision is unexpected, unexplained and wrong.

"The council will do everything possible to ensure the hospital project gets under way soon. This delaying decision must not become the first step down a slippery slope of further delays and disappointments for the local community, who are relying on this facility for their future healthcare needs."