The cash must not be used for emergency ambulances

A decision over the loan will now be made at the next full county council meeting on 28 October.

The money would come from the council's reserves and current plans are to repay the amount by 2009.

The leader of the council, John Lobb, said the move would not affect county council services or the council tax.

Approved in principle

"There are one or two legal technicalities to be entered into by the health authority and the district auditors," he said.

"If it is agreed the money made available to the health community would be returned over a period from 2006 to 2009, with interest."

The request for the loan was approved in principle by the county council's executive committee last week.

The health service in the county is facing a �31m deficit and cuts in services.

Savings of �16m are already planned in mental health, primary care and health improvement.

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.