There are currently 32 foundation trusts

Such trusts have greater independence from Whitehall, and more control over their finances with the right to carry over deficits from one year to another.

A recent report found the 25 foundation trusts up and running in 2004 clocked up a �37 million deficit between them.

The applications will go forward to the independent regulator, Monitor, which will decide which to authorise.

'Financially viable'

Despite the cash flow concerns, Health Secretary Patricia Hewitt declared her support for the trusts which for the first time include mental health trusts.

"NHS Foundation Trusts give local people a greater say in how their hospital is run and give local staff more freedom to develop new and better ways of working.

"Foundation Trusts are a part of our continuing health reforms to create a 'patients-first' NHS that keeps on improving to meet patient's needs and get the best value for money."

Ms Hewitt said that the trusts would only be successful if the regulator was convinced they had the ability to take on the new responsibilities of foundation status.

Monitor chairman Bill Moyes said he welcomed the opportunity to assess the new applicants, but stressed trusts had to be professionally managed and financially viable.

"Those are essential criteria if they are to operate successfully, delivering world-class healthcare while being responsive to the demands of their local populations."

Trust status was previously only offered to top-rated hospitals - those with three star ratings - but recently the Department of Health said those classed as two star trusts could apply.

The latest applications come from: