HEALTH minister Alan Milburn has insisted casualty services must remain at Banbury's Horton Hospital - otherwise the merger with Oxford Radcliffe will be off.

He has given his approval for the Oxford Radcliffe Trust to take over the Horton from April 1, subject to conditions.

Mr Milburn, in a letter to Radcliffe trust chairman Peter Bagnell, obtained by the Oxford Mail, said the merger was granted so long as "local health authorities and the trust board continue to reassure the local community that emergency services, to meet local need, will continue at the Horton."

Mr Milburn also insists that a non-executive director for the Horton is included on the Oxford Radcliffe Trust board to ensure it represents Banbury interests.

He added: "This integration provides the best opportunity to safeguard the services valued so highly by local people and therefore should proceed without delay."

Banbury MP Tony Baldry added: "Many will be disappointed at the decision to merge the management of the Horton Hospital with the Oxford Radcliffe, but there will be relief that the minister has insisted that full accident and emergency services should continue at the Horton.

"I and others are going to need to scrutinise very closely what happens to ensure that in the future the Horton is treated fairly to ensure the fullest possible range of services in Banbury, and that the Horton continues to be a strong acute general hospital."

The Horton Hospital is £1.2m in debt and NHS officials claim its overheads are too large for a small trust.

Oxfordshire Health Authority has vowed to retain basic services at Horton. The merger will save an estimated £500,000 a year, with £375,000 coming from salary reductions as senior managers - including chief executive Dr Louise Wallace - lose their jobs in a £1m redundancy payout.

Dr Wallace said a total of 21 posts were under threat, adding: "My concern is that health authority funding for the present level of services is not guaranteed beyond the next financial year."

She would not comment on her personal situation.

Remaining staff will be issued with a notice stating their contracts will be transferred to the Oxford Radcliffe Hospital Trust from April 1.

Michael Taylor, chief executive of Oxfordshire Health Authority, said: "We welcome the decision to integrate the hospitals. We see it as the best way to safeguard patient services and improve access to a wide range of specialised services for patients in North Oxfordshire, South Northamptonshire and South Warwickshire."

, including the 24-hour accident and emergency unit.

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