Health Secretary Jeremy Hunt could not go ahead with his decision of cutting services at a major hospital as the decision was quashed by the High Court.

As the judge ruled Hunt did not possess the power to cut down services as he decided to downgrade casualty and maternity services at Lewisham Hospital in south-east London. There was applause in the court following this.

The financial collapse of neighbouring South London Healthcare Trust caused problems and Mr Hunt was trying to deal with them as the problems lost £1million a week.

The provisions of the National Health Services Act 2006 were breached by Mr Hunt's unlawful decision and this was quashed by Mr Justice Silber.

It was a serious blow for Mr Hunt because the case involved the first legal test of a Government procedure for dealing with failing NHS organisations - known as the Unsustainable Providers Regime.

A Trust Special Administrator to the South London Healthcare Trust was appointed by Mr Hunt and the cuts at Lewisham Hospital were announced by the administrator as a recommendation. Mr Hunt said that this step would have led to an improvement in patient care in south London.