The Royal Free Hospital in Hampstead, North London, and Queen Mary’s Hospital in Sidcup, southeast London, became the latest to announce cuts despite six years of unprecedented government funding for the NHS.

The Royal Free, which was praised by the Health Secretary last year for its work after the London bombings, said that about 480 posts will be lost under plans to achieve savings of £25 million in the next year. The trust said it would ensure that redundancies were kept to a minimum.

Hospital chiefs at Queen Mary’s also gave warning that 190 jobs may be lost in an attempt to reduce a predicted £13 million deficit.

Andrew Way, chief executive of the Royal Free Hospital NHS Trust, said that the cuts at his hospital would be part of a drive to improve staff efficiency and reconfigure wards. “These measures are not exceptional and are designed to bring the Royal Free into line with other organisations,” he said.

“We must achieve financial balance if we are to control our own future as the Government has made it very clear that it will not bail out organisations that fail to do so.”

Mr Way praised staff for their hard work in implementing the trust’s “savings plan”, which would help to ensure a robust financial future, but Geoff Martin, head of campaigns at London Health Emergency, accused the Royal Free of trying to smuggle the news out on Budget day.

He said that the announcement helped to explain why Gordon Brown had “body-swerved the NHS question” in his speech. “Sacking nurses never looks good for the Government,” Mr Martin said. “These cuts will have a devastating impact [on] emergency planning in London.”

Andrew Lansley, the Tory health spokesman, said: “One year ago ministers were heralding NHS staff as the heroes who were delivering on waiting list targets. Today they are silent as the same NHS staff are threatened with redundancy. Faced with the failure of his billions to deliver corresponding improvements for patients, Gordon Brown and the Treasury have abandoned the NHS.”

A Department of Health spokesman said: “We are reassured that these plans reflect the need to treat patients more efficiently and improve the organisation of services.”

TIGHTENING UP

Hospital job cuts announced in last week:

Explore Health News

• Swine flu

Times Recommends

• Shrinking violet Gordon turns into raging bull
• Eddie Izzard: 'I keep thinking if I do all these things she'll come back'
• Is sex for the disabled the last taboo?