Torbay Council’s administration has come under fire after agreeing to hand £7.5million to Exeter’s health trust to help create new facilities in the city.
Liberal Democrat Torbay councillor Cat Johns (Clifton with Maidenway) said: “This is another nail in the coffin for Torbay Hospital.”
Critics say spending the money on a laboratory in Exeter undermines the bay’s own hospital amid fears that it is being gradually downgraded.
But the council says the money will help create much-needed facilities and will be paid back with interest. It says it remains fully committed to supporting its local hospital into the future.
The new laboratory is taking shape at Gadeon House on the outskirts of Exeter, which is a building owned by Torbay Council. It is part of a portfolio of out-of-town properties acquired by Torbay which has also included a cinema in Taunton, a pasty factory in Cornwall and an Amazon warehouse near Exeter Airport.
The purchases were heavily criticised at the time they were made, and the government has since banned the practice, but income from the portfolio has given Torbay much-needed funds to balance recent budgets in the face of dwindling government financial support.
The recent contribution to the Royal Devon University Healthcare NHS Foundation Trust, which the council says is not a loan but a ‘capital contribution and works deed’, was decided without being debated at a council meeting. The move has been criticised by opposition councillors, including the bay’s MP.
The Torbay-based Heart Campaign, which has galvanised public opposition to proposed changes in local healthcare services, has also raised concerns.
Cllr Johns went on: “Torbay Council has decided behind closed doors to lend £7.5million to Royal Devon University Hospital to install a spanking new histopathology lab. Lucky Exeter I say, but what about Torbay Hospital, what about the public?
“Enough is enough! The Heart Campaign and its supporters have proven to everyone that Torbay Hospital is still important to us and very much needed.”
Cllr Swithin Long (Lib Dem, Barton with Watcombe) added: “Such a regional scheme would see the movement of jobs from Torbay to the Exeter economic area, which would clearly better serve Exeter than Torbay.
“There are also questions to be asked about whether a relocation of the pathology services from Torbay Hospital could undermine the hospital. Therefore, is it in the public interest to facilitate such a change in service provision?”
Work has already begun on the first phase of the Pathology Consolidated Services Laboratory at Gadeon House, which will take on blood sciences and microbiology services from the Royal Devon and Exeter Hospital and the North Devon District Hospital from March 2027. There is no specific mention of moving any services away from Torbay.
The trust says current pathology facilities at the Exeter and North Devon hospitals are outdated and no longer fit for purpose.
Torbay’s Liberal Democrat MP Steve Darling has also criticised the council’s decision to loan money for the Gadeon House project.
He said: “The Conservatives are aiding and abetting the removal of jobs from Torbay to Exeter and undermining the viability of Torbay Hospital.
“Why is Torbay seeing this as a commercial transaction without asking if it is in the best interests of the bay?”
A Torbay Council spokesperson said: “We remain the landlord of Gadeon House, which secures income for the council to support us in delivering our services. We have agreed a 25‑year lease with Royal Devon University Healthcare to deliver a new pathology laboratory. This enables essential improvements to services currently housed in accommodation with significant long‑term limitations, supporting a safer and more resilient regional pathology network.
“Through a capital contribution and works deed, we have agreed to contribute £7.5million towards the £10million specialist fit‑out costs required for the facility. This reflects the complex and highly technical requirements of a pathology laboratory, which exceed standard commercial fit‑out costs. This contribution will be repaid to the council with interest, and is not a loan but a mechanism to deliver landlord and specialist works needed for the tenant.
“The decision to enter into the lease and agree the fit‑out contribution was made under delegated officer powers, in line with the council’s constitution. The chief executive consulted group leaders as part of the urgent decision‑making process, and all were supportive of the approach.
“Alongside this, we continue constructive discussions with Torbay and South Devon NHS Foundation Trust and have supported wider investment, including land at Edginswell to increase capacity and improve access. Together, these actions demonstrate ongoing partnership working to address immediate challenges and support the future and modernisation of Torbay Hospital and local healthcare.”
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