A new accident and emergency department was proposed last February to cope with the 50,000 patients seen every year - 10,000 more than it was designed for.

But concerns about the hospital trust's financial deficit have halted plans for the �7m extension.

A Royal Cornwall Hospitals Trust spokeswoman said it did not rule out the project happening in the future.

The trust is cutting costs and 300 jobs to reduce a �31m deficit.

The Strategic Health Authority has told managers the debt must not grow beyond �20m by the end of this financial year.

A recovery plan is in place that is designed to save about �9m.