Children's and maternity services at Banbury's Horton Hospital have been safeguarded for the next two years, according to a report from health bosses.

Last month, the Independent Reconfiguration Panel (IRP) rejected proposals put forward by Oxford Radcliffe Hospitals NHS Trust that would have downgraded services and closed the Horton's special care baby unit.

The IRP report said the cutbacks would not have provided an accessible or improved service for patients in north Oxfordshire and surrounding areas.

In its recommendations, the IRP ordered the PCT to develop a clear vision for the future of children's and maternity services in Banbury, as part of a detailed strategy for health service as a whole.

Andrea Young, chief executive of the PCT, said she had asked the ORH trust to "stabilise" services in Banbury for the next two years.

She added: "We are trying to learn from the past, and see how we can adopt a fresh approach to looking at health care in the Banbury area.

"We are taking a fresh approach to this work, and are keen to make sure that we reach out to the wider public and ensure they have an opportunity to get involved.

"This includes the general public, patients, carers and staff working in the Horton."

George Parish, chairman of the Keep The Horton General Group, said: "We have already been in contact with the PCT and are looking forward to being closely involved at all stage of the process."

Helen Peggs, a spokesman for the ORH, said: "We are pleased this is moving forward and we will work closely with the PCT and other stakeholders to try to find suitable solutions to the difficulties some of the Horton services currently face."

The IRP was set up by the Government in 2003 to advise on controversial proposals for NHS service changes.

The Horton issue was referred to the panel by health minister Alan Johnson, after the matter was sent to him by the Oxfordshire joint health overview and scrutiny committee. The referral followed two years of campaigning by the Keep The Horton General group.

According to the PCT, the Better Healthcare Programme for Banbury and surrounding areas will have "effective and inclusive" stakeholder and public involvement throughout the programme.