The announcement by Leicester, Leicestershire and Rutland (LLR) ICB came after the DHSC extended the spend date for the facility until March 2026.

Sarah Prema, chief strategy officer at LLR ICB, said: ‘This is fantastic news for the people of Hinckley and surrounding areas.

‘The DHSC decision to extend funding for the project into 2026 will enable delivery of a modern, fit-for-purpose Day Case Unit for the local population allowing care to be delivered closer to home.'

The Day Case Unit will cater for a wider range of clinical specialities in more modern facilities, including breast care, general surgery, gynaecology, ophthalmology, orthopaedic surgery, pain management, plastic surgery, podiatric surgery, renal access surgery, urology and vascular surgery.

Work has begun on removing asbestos for safe demolition of the existing building.

The removal work is expected to be completed by March 2025. In the meantime, the ICB will be preparing a planning application early next year, for the new modular build. NHS Property Services who own the building approved a business case for the Day Case Unit in March 2024.