Front line services will benefit says the government

NHS South West replaces the Strategic Health Authorities for Avon, Gloucestershire and Wiltshire; Dorset and Somerset; and South West Peninsula.

The NHS says the new structure will reduce management and administrative costs by avoiding duplication.

It claims about �10m will be freed up in the South West which will be spent on front line services.

Biggest debtor

The total NHS deficit for this year is expected to be about �620m.

The Royal Cornwall Hospital Trust, the biggest debtor in the South West, is overspent by nearly �16m.

NHS South West will be led by Sir Michael Pitt as chair, and Sir Ian Carruthers as chief executive.

The location of the headquarters is still being considered.

The Westcountry Ambulance Trust is also being merged with Dorset to form the South Western Ambulance Service.