A campaign was launched today against delay in building a new hospital.

Arun District Council and Littlehampton Town Council are urging an immediate start on the Arun Community Hospital in Littlehampton. Councillors were furious when Surrey and Sussex Strategic Health Authority called a halt to the £8 million project last month just as work was about to begin.

The former Littlehampton Hospital site in Fitzalan Road was demolished at the end of last year to make way for the new hospital.

The SHA said it was concerned 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 Adur, Arun and Worthing Primary Care Trust, which is responsible for managing the new hospital, breaking even this year.

Arun Council leader Norman Dingemans has joined Littlehampton Mayor David Dyball in pressing local MPs to take up the issue with Secretary of State Patricia Hewitt.

He has sent letters to both Nick Gibb, MP for Bognor and Littlehampton, and Peter Bottomley, whose West Worthing constituency includes part of the Arun district.

Coun Dingemans told the MPs: "Not only has this decision come out of the blue, without any local consultation or pre-warning, but the timing, with work due to start on site, is hard to reconcile with the detailed work which has gone into the planning of this project.

"A sound business plan demonstrated the sustainability of a new community hospital in Littlehampton while the arguments to explain the benefits to the community were compelling.

"Finance, it appeared, was not an issue, with the PCT in a healthy financial position.

"It is extremely unfortunate that at this late date the scheme has been deferred just days before contracts were to be signed with the developers. The demolition of the old hospital was hailed as the start of a brand new project which would provide the district's residents with better patient care.

"The announcement has created enormous uncertainty locally as to whether the delay will turn out to be six months or whether the future of the whole project is in doubt.

"The implications of this setback for local health professionals who will have already been planning future patient care around provision of the new community hospital must be serious."

Residents are being asked to send in their views on what has happened as the two councils work together to make their case.

Contact Coun Dingemans at the Arun Civic Centre, Maltravers Road, Littlehampton BN17 5LF or at normandingemans@aol.com .

A spokesman for the SHA insisted the development was still part of its plans.

He said: "We are currently undertaking a complete review of all hospital services and PCTs in Sussex and Surrey to see exactly what is being provided and where.

"The new community hospital in Littlehampton is still an important part of our plans."