The cash must not be used for emergency ambulances

The county's health trusts are �31m in the red, but now they are hoping the county council, which has reserves of �70m, will lend them �8m to ease their plight.

If a two-year loan is given the go ahead by the council later this month, it will be the first time the NHS in the region has effectively been bailed out by council tax payers.

The health community in Cornwall consists of the three primary healthcare trusts and the Cornwall Partnership NHS Trust , supported by the South West Peninsula Health Authority.

'Positive' partnerships

Looking after the elderly is already done in close partnership with Cornwall social services so some nursing staff see nothing wrong in receiving financial help from the county council.

But the law limits what can be funded with money borrowed in this way.

Health managers must not use it for example for emergency ambulances and surgery.

Anthony Farnsworth, director of strategic partnerships for the South West Peninsula Health Authority, said: "We have plans to modernise services, but we have to strike a balance to keep pace with resources."

County council leader John Lobb, said: "It's obvious that the health authority has had difficulties.

"The partnership arrangements between us have been very positive indeed and we believe it is possible to assist them to reach their targets."