Leicester hospital trust loses legal fight over new homes cash

The legal battle centred on the new Lutterworth East development

An NHS trust has lost a legal battle to demand £1m to offset extra pressure from a new housing estate.

University Hospitals of Leicester NHS Trust said the 2,750-home Lutterworth East development would ramp up pressure on stretched health services.

The trust took planning authority Harborough District Council to court after the council failed to acquire the cash from the developer.

High Court judge Mr Justice Holgate dismissed the challenge on Monday.

The site - which also includes two schools and warehousing - is being developed by Leicestershire County Council.

The trust said the £1m would cover costs for extra medical services and asked the district council to demand the money from the county council, the Local Democracy Reporting Service (LDRS) reported.

However, it did not and the case was taken to the High Court in a bid to force the money to be paid.

'Funding gap'

Mr Justice Holgate ruled the district council had acted lawfully in its decision and the hospital trust would not receive the £1m of developer funding from the county council.

He added the trust failed to establish there would be a "funding gap" as a result of the new development.

Harborough District Council said it welcomed the decision, adding it hoped the trust would "now accept the outcome".

"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," a spokesperson added.

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