Embattled rail repair firm Jarvis is responsible for the upkeep of the £55 million West Berkshire Community Hospital - opened in March - but admitted this week it owes more money than it is worth.

The PFI specialist has already exited the rail maintenance industry at a write off of £40 million, but work building student flats for universities has also dried up, costing the firm another £115 million in future business.

Kevin Hyde, group chief executive said last week: "This is an extremely challenging time for the group and we are taking the necessary decisions and implementing them. We are collecting outstanding payments and have more to do.

"We are also taking very significant overhead cost out of the business. Considerable progress has been made, and further action is planned to ensure a leaner, sustainable core business for the future."

Newbury's 60-bed hospital is one of only two hospital projects the firm has been awarded, in a scheme which saw Jarvis buy the Turnpike site - on heavily protected greenbelt land - and lease it back to the NHS for 25 years.

Jarvis has been under investigation for the Potters Bar train crash.