The health service’s capital budget will be slashed by more than a fifth in the next financial year, it has been claimed.

According to figures obtained by Channel 4 news, the budget will be cut by £1.4 billion falling from £6.7 billion to £5.3 billion.

The report claims that £900 million of the 21.9% cut would come from government money being withdrawn, while the rest would be PFI money.

Gordon Brown told MPs that NHS spending on capital projects would fall as the completion of many new hospitals meant there is less need for large construction projects.

Health minister Mike O’Brien said: “The NHS budget is in a strong position after a decade of record investment and will increase by 11.3 per cent up to April 2011 as set out in the latest spending review.

“The 2009 Budget Report reiterated the Treasury's full support for continuing with PFI schemes across all sectors where they are demonstrably value for money and affordable. The pre-Budget report in November 2009 confirmed this commitment."