An argument has broken out over money from developers being used for roads and education over healthcareA brick building bears the sign Latham House Medical Practice. It is on the edge of a road, with bollards surrounding it.Latham House, Melton’s only GP surgery.(Image: Google)

Plans for a second GP surgery for a Leicestershire town have been put on hold with a council leader calling the news “hugely disappointing”. The NHS has confirmed it will “pause” the process of trying to find a new site for Melton’s mooted second surgery until February 2027.

The only GP surgery in the town currently is Latham House in Sage Cross Street, but NHS bosses had been working with Melton Borough Council (MBC) to identify a possible location for a new surgery. Proposals had included redeveloping part of the council’s own Parkside headquarters or at MBC’s Phoenix House community hub.

The NHS Leicester, Leicestershire and Rutland Integrated Care Board (ICB), which manages healthcare in the county, blamed the delay on several factors, including a lack of money from new housing developments. Under what are known as S106 agreements, developers of major housing schemes provide money for local facilities and services that will be impacted by the increase in residents.

MBC leader Pip Allnatt said he was “hugely disappointed” at the news, and that he was “particularly frustrated” that a shortfall in S106 payments had been given as a reason. He claimed decisions over S106 payments had been made by the borough council’s previous Conservative administration prior to the 2023 local elections, in which the current Labour and Independent coalition took control of the authority.

Coun Allnatt said: “Before I was even elected to Melton Borough Council, arrangements agreed between my predecessors and [Leicestershire County Council] meant that there is almost no S106 money for health because nearly all of it goes to the county council for new roads and schools.”

But he said he recognised the “financial challenge” and said the council would keep working to find another site. He said: “The Government’s new 10-year plan for the NHS makes a clear commitment to community health, and we will continue to push the ICB to deliver what is needed for Melton, and we will keep doing all we can to support them.”

The ICB also said there had only been a 3.19 per cent increase in patient registrations at the practice since 2020, which Coun Allnatt suggested could be “due to dissatisfaction with existing local health services more generally”.

However, Leicestershire County Council leader Councillor Dan Harrison called Coun Allnatt’s comments about S106 funding “outrageous”, and said it is MBC’s responsibility to negotiate S106 agreements. Coun Harrison said: “This is his job, not ours – it’s that simple.

“If something is our fault, we’ll hold our hands up, but if not, we’ll robustly defend our position. These absurd claims smack of a complete lack of understanding, at best. I’m astonished that Mr Allnatt has either ignored, or doesn’t seem to understand, his own council’s policies.

“This sits fairly and squarely with the borough, not us. Their current adopted plan prioritises education and transport contributions over other requests, including health. This was their decision alone.”

Pete Burnett, Chief Strategy Officer for the LLR ICB, said: “We are committed to continuing to work with Melton Borough Council to explore options for a second primary care site for Melton residents, when guaranteed funding and suitable, affordable premises are identified.”

He said the ICB was working with Latham House to increase the ways it can support local residents, including “a new digital suite at the main site and an approved redevelopment of a property owned by the practice on Sherrard Street to extend clinical services”.

The ICB said that if would be “happy to revisit” the situation if extra funding becomes available before February 2027.