MPs today welcomed the move to merge the two major hospital trusts to create a "super trust" in Birmingham, saying it could lead to better care and more jobs for local people.

Liam Byrne (Lab Hodge Hill), said he hoped the news of University Hospitals Birmingham and Heart of England NHS Foundation Trust working together would continue to raise care standards.

Whilst Steve McCabe (Lab, Selly Oak) added it was the “logical” thing to do following the news that HEFT had reported a £29.5 million loss in October last year.

As a result of the financial troubles, Dame Julie Moore, chief executive of UHB, and Jacqui Smith were parachuted in to take over the running of the hospital in November last year.

Jacqui Smith.

Mr McCabe said: “It’s not a devastating surprise that this has happened. People have said this has been in the wings since last year when Jacqui Smith and Dame Julie Moore were moved in.

“I think it is the logical place to go. You do wonder in a city the size of Birmingham why we have got these two massive structures that are both consuming resources in terms of admin.

“It seems an awful waste when it could be put into frontline care.”

Mr Byrne added: “The step-in from UHB has helped to turn things around at HEFT. Personally it will pay off for the two to merge together, and it is not something I am against.”

He said there were three issues for him that the new alliance could potentially mean.

“Firstly this merger will continue to raise care standards, because they have improved since new management came in,” he said. “Secondly, can you strengthen the primary care system around the area. and thirdly in this post-Brexit era, what are they going to do about hiring people locally?

“By coming together with UHB, this is the perfect opportunity for Heartlands to step up in hiring local people.”

He added: “The merger should help the financial situation. Facilities at both hospitals are not being used effectively.

“They are spending a fortune on temporary staff, as well as hiring people from abroad.”

Health regulator Monitor was brought into investigate the group in October last year as a result of the deficit.

A month later Dame Julie Moore, chief executive at UHB, was parachuted in to take up the role as interim CEO at HEFT.

In December 2015 Jacqui Smith became interim Chair at the Trust, earning £50,000-a-year for working just two days a week.

Fury gripped HEFT governors who claimed they were initially told her role at the trust would be unpaid.

Good Hope Hospital. in Sutton Coldfield.

The sites affected are the Queen Elizabeth Hospital in Edgbaston, Heartlands in Bordesley Green, Good Hope in Sutton Coldfield and Solihull Hospital, as well as the Chest Clinic, Solihull Community Services and satellite services.