NHS bosses lose legal battle to force Lutterworth housing developer to pay out £1m to offset extra pressure on stretched health services

Leicester’s NHS hospitals trust has lost a legal battle to force a developer to pay out £1m to offset the extra pressure a major new housing estate near Lutterworth would have on stretched health services.

The University of Leicester Hospitals NHS Trust said the 2,750 home Lutterworth East housing scheme would ramp up pressure on the NHS when the new estate was granted planning permission.

It asked planning authority Harborough District Council to demand the developer of the new homes, Leicestershire County Council, pays an extra £1m to offset the extra pressure the new homes would bring.

But the district council decided not to ask the county council for the extra money, which led the NHS to mount a legal case in the High Court which would have forced the money to be paid.

High Court judge Mr Justice Holgate dismissed the challenge yesterday, Monday February 13, saying the hospitals failed to establish that there would be a “funding gap” as a result of the new development.

He added the district council had acted lawfully in its decision and that the NHS trust will not receive the £1 million of developer funding from the county council.

A Harborough District Council spokesperson said the authority welcomed the decision.

The spokesperson added: “The council is pleased the court has ordered the Trust should contribute to the council’s costs of defending the claim and that the judge refused permission for the Trust to appeal his decision.

“The council hopes that the Trust now accepts the outcome. We wish to thank Leicestershire County Council for its support.

“We will now focus on delivering much needed homes, businesses, schools and infrastructure sustainably at Lutterworth East.”

University Hospitals of Leicester NHS Trust has been contacted for comment.