BERKELEY Hospital is set to close within three years as part of the latest bid by Gloucestershire health bosses to clear their £40 million debt.

The 20-bed facility, along with the Sandpits Clinic in Dursley, will be axed in favour of a new 'health campus' and doctors surgery to be built in Dursley.

In February, the chief executives of the three Gloucestershire Primary Care Trusts warned the long-term future of Berkeley's minor injury unit was at risk.

Its fate was sealed on Wednesday by Richard James, chief executive of Cotswold and Vale PCT, who said Berkeley Hospital was still vital in the short term but would eventually be closed.

He said: "I think the new build will be about three years. There is planning and work to develop a cost efficient model.

"What we do need to do with Berkeley is get it working a lot more efficiently with a better transfer of patients. We do not have many beds in the west of the county and there is a need to be able to move more patients to Berkeley and Stroud than we do at the moment."

Only 14 months ago Mr James made a statement to the Gazette claiming any closure in Berkeley would be the result of public consultation.

He said at the time: "There are no plans at the moment to move the hospital to its centre of population. However, there is a need to discuss this with the local community.

"If any changes are to be made we would expect these to be mad with the support of our local population. After all, the local NHS services are for them."

In the announcements this week surgical services at Stroud General Hospital have also been reduced with Berkeley Hospital focussing on medical and rehabilitation care. Across the county 500 NHS jobs will go.

The plans were announced to staff at a series of meetings on Wednesday. In a joint statement, Mr James, along with four other health trust executives, said the cuts in services were necessary.

They said: "We are very proud of the services we offer to patients. However, we still need to make savings and ensure that we live within our means.

"This is a difficult time for the NHS in Gloucestershire, but we need to get on and secure savings quickly."

Rumours have already been circulating in Dursley that the new health and social care centre planned for the town will be built on the former Lister Petter site.

Reacting to the announcement, Stroud MP David Drew told the Gazette: "I am not in favour of any changes when there are no new facilities. Why are we messing around?

"Berkeley has a perfectly good hospital but the PCT's view is that the population is larger in Cam and Dursley. But you cannot just pick up a hospital and move it."

Ralph Pinnell, chairman of Berkeley Town Council, said: "This got leaked to me a year ago and I put it to the health authority at a public meeting in Berkeley and Richard James denied this and said he was looking to extend Berkeley Hospital.

"They knew this was on the cards a year ago. This closure is not because of Government cuts.

"I'm really upset that they can even think of taking something like this away from the Berkeley community."

Ted Holmes, Berkeley town councillor, said: "I am waiting for Richard James to make a personal statement to me.

"He promised that if this would happen he would come to Berkeley and tell us himself.

"We are going to fight this tooth and nail."

Jane Ball, Dursley Town Mayor, said: "It would be sad to see Berkeley Hospital close. I know a lot of people in Dursley who appreciate the work it does and find it far more convenient than travelling to Gloucester - particularly the elderly.

"I don't like the idea of it coming to Dursley at the expense of Berkeley, but if it does we will welcome it in the town."