Health campaigners told of their devastation after plans to replace Bicester Community Hospital were shelved.

NHS Oxfordshire blamed complex legal issues in the tendering process for the decision, but insisted it was committed to providing the town with a new hospital.

Campaigner Les Sibley said: “The people of Bicester have been badly let down and will feel devastated by this news to scrap the project yet again.”

The PCT started the tendering process in January 2009 and was this month due to unveil bids made by developers.

Chief executive Sonia Mills said “NHS Oxfordshire remains committed to the scheme.”

The PCT said the hospital, currently in Kings End, would be on one site, but has not revealed where.