Watford General's trust says the site's "crumbling infrastructure" is not fit for purpose after the nationwide project was paused for a "complete review" by government.
Labour Chancellor Rachel Reeves said she has had inherited a £22bn projected overspend in the public finances “now – not in the future” – throwing the scheme into doubt.
A West Herts Trust spokesperson said: “As our local communities, employees and partners know, the current hospital estate is not fit for purpose and has suffered from decades of chronic under-investment.
“There is a huge backlog of maintenance needed to existing buildings and costs associated with meeting standards. The crumbling infrastructure means delivering safe and high-quality care is unsustainable."
The trust said it looks forward to reiterating its compelling case and pointed to the "well-developed" scheme with planning permission, land acquired for the new building, and enabling works already started to clear the site.
“There is strong support both politically and within the local communities we serve for the new hospital and the case for rebuilding Watford remains stronger and more urgent than ever.”
News that the Chancellor is rethinking the project has sent alarm bells ringing for Hertfordshire politicians, who have lobbied hard for the hospital redevelopments.
Cllr Nigel Bell, head of the Labour group on Herts County Council and representative for Watford, said: “I, along with the new Labour MP for Watford, Matt Turmaine, was bitterly disappointed to hear from the new Chancellor that the promises on funding for a ‘new’ Watford Hospital by the previous Conservative government were just a mirage and sadly gave false hope to Watford residents and others across south west Herts.”
He added Mr Turmaine will work to ensure Watford is in the best position after the review to deliver a "costed and realistic new timetable to build the hospital".
Liberal Democrat leader of the county council, Cllr Steve Jarvis, said: “The rebuilding of Watford Hospital is vital to meet the healthcare needs not only of Watford but of the whole of the western part of Hertfordshire.
"It was identified by the local NHS as the right way to meet these needs following a comprehensive process.
“Having already been delayed many times by the Conservatives' failure to deliver their hospital building programme, it is very disappointing that Labour have now paused the programme."
He said there can be no more delays and Herts Liberal Democrats will press the government to deliver the scheme.
Stephen Woodard, chairman of the Watford Conservatives, previously said: "The Labour government's decision, supported by the new Labour MP, is an utter betrayal of Watford and West Herts residents and NHS staff.
"Our former Conservative MP Dean Russell secured funding for the new Watford General hospital through his relentless hard work. Any attempt to claim otherwise is quite frankly politics at its worst."
He said the Chancellor's decision "reveals the new MP either showed blatant dishonesty or shameful naivety" in dismissing concerns that Labour would delay the new hospital plan during the election campaign.
"Labour knew exactly what finances they were inheriting with access to OBR data, this announcement today is transparently setting the stage for tax increases," Mr Woodard added.
Watford General Hospital was announced by the last government in 2023 as one of 40 UK hospitals to be rebuilt, with construction planned in 2026 and the new hospital scheduled to open in 2030.
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