Costs to be cut by 45 per cent

"SIGNIFICANT" job losses can be expected in the NHS over the next four years after the Government pledged to cut management costs by at least 45 per cent.

At least a third of all NHS quangos will be abolished, as will the primary care trusts and strategic health authorities which oversee and commission local services, in a drive to reduce the bureaucracy that the Conservatives say has suffocated the NHS over the past decade.

Yesterday's health White Paper promised a review of arm's length bodies and warned: "Subject to Parliamentary approval, we will abolish organisations that do not need to exist."

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Reports that the Food Standards Agency will be culled first were not confirmed by the Department of Health, which said all the bodies are "under review".

The Government expects to find 15-20bn in efficiency savings.