2 August 2012 Last updated at 13:17 ET

Thirsk health centre plan rejected

Under the proposals Thirsk's community hospital would have been replaced with a new health centre

Plans to spend more than £20m on health care in Thirsk have been abandoned.

Health chiefs said the plan, which would have seen the town's community hospital replaced with a new health centre, was not financially viable.

North Yorkshire County Council, which proposed the initial scheme, said it was "disappointed" with the decision.

Part of the scheme, to create a new care housing development for the elderly, is being supported by health officials.

'Hammer blow'

The Conservative-run authority had planned to demolish the 16-bed Lambert Memorial Community Hospital and build a new health centre.

It would have also replaced an elderly people's home in the town with a new and larger care housing development, allowing elderly people more independence.

The Hambleton, Richmondshire and Whitby Clinical Commissioning Group (CCG) said it had worked closely with the county council but could not support the full scheme.

Dr Vicky Pleydell of the CCG said: "We are disappointed that our research has shown that investing in this scheme is neither clinically appropriate nor financially viable for the CCG."

Gareth Dadd, who represents Thirsk on the council, said the ruling was very disappointing and a "hammer blow" for people in the town.