Andy King, Labour's Prospective Parliamentary Candidate for Rugby, this week claimed Warwickshire Primary Care Trust (PCT) has committed 'necessary' financial support for the Barby Road hospital - the subject of recent possible closure speculation.

Together with Coventry PCT, Mr. King says they have agreed financial support for the hospital on condition that more services are provided locally.

And although Mr. King said he understood if the claims were met by 'cynicism', he believed it could see a return of previously-axed services to the hospital.

He said: "As far as I'm concerned, we will see a return of many of the services that people feared have been threatened or temporarily moved.

We have got a tremendous local hospital serving the community and I believe this is a major breakthrough."

The hospital's future was plunged into doubt earlier this year when Conservative leader David Cameron listed the hospital as one of 29 'at risk' of closure.

As previously reported, bosses at University Hospitals Coventry and Warwickshire NHS Trust - which runs the hospital - reiterated their support for the hospital.

David Rose, Chief Executive of Warwickshire PCT, which runs health services for Rugby patients, also refuted the claims.

Ron Ravenhall, Secretary of the Hands Off St. Cross group (HOST), said the move was prompted by 'people power' and government worries over the marginal Rugby seat.

Mr. King said: "If people see it in those terms, so be it. But all that matters is making sure we get the best services that you can get for Rugby patients."

A spokeswoman for Warwickshire Primary Care Trust said she was not aware of any discussions taking place.

A spokeswoman from the University Hospitals Coventry and Warwickshire NHS Trust referred back to previous statements of support for the hospital.