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Theresa May is planning to force the NHS to sell off billions of pounds worth of assets to property developers.

She is backing a hugely controversial strategy to flog buildings and land described as a “source of untapped value” to private firms.

And under the plans, NHS trusts will suffer harsh financial penalties if they refuse to sell their assets.

A 43-page document warns that those which do not “maximise disposals” will “not be eligible to access public capital funding”.

Sir Robert Naylor, who drew up the plans, was asked by Jeremy Hunt to report on how the NHS could raise cash by selling off land and buildings.

(Image: AFP)

Sir Robert concluded that £5billion could come from asset sales but said the same sum is needed to repair buildings crumbling due to a lack of maintenance.

The report said: “The review has investigated the opportunities presented by releasing inefficiently used or unused land for other purposes, in particular for residential development.”

The prime minister has publicly backed the plans.

Mrs May backed the implementation of the plans during her set-piece BBC interview, when she was asked how she would fund a commitment to extra NHS spending.

She told presenter Andrew Neil: “There’s a report that was done on the NHS, the Naylor Report, which set out what was needed and we’re backing the proposals in the Naylor Report.”

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The Naylor report recommends selling assets to fund reforms called sustainability and transformation plans.

Th proposals have sparked anger because they involve shutting hospitals and A&E units.

Labour has promised to stop the plans, which have been drawn up in 44 areas of England.

Some health experts defended plans to sell off NHS assets.

Nigel Edwards, of health think tank The Nuffield Trust, said the NHS has “a lot of money tied up in land and buildings” and selling some of it off may not spell disaster for the health service.

But NHS campaigners attacked the plans.

(Image: PA)

Deborah Harrington, of the National Health Action Party, told The Mirror: “This is about taking away local services on your doorstep.

“It’s simply not true that all of this land and all of these buildings are surplus to requirements. The truth is that this is the biggest ever drive to sell off the assets of the NHS in its history.

“Theresa May has publicly said she supports the plans. She is trying to divest the public sector of its assets. When I read the report for the first time I felt physically sick.”

She added: ““We own this, it’s ours. It’s been handed down through the generations since 1948. We all contribute to this society that provides these things, and we’re being told now they’re unaffordable unless we cannibalise them, constantly reducing our property and ownership.”

Dr Kailash Chand, the former deputy chair of the British Medical Association, said: “Personally, in my view the Naylor report is an outline to sell off the NHS.

“Hospitals, clinics and other NHS property are squarely in the sights of the purchasers. Theresa May has given us a huge clue as to how her government would finance ‘improvements’ to NHS services, and they’re absolutely scandalous.”

Labour’s shadow health secretary Jon Ashworth also criticised the plans.

He said: “Labour have repeatedly warned of the neglect of NHS infrastructure. Under the Tories hospitals are crumbling.

“The Tory response is to now sell off buildings and land with no explanation of when the NHS will see a penny piece of the proceeds. The choice in this election is now clear; investment with Labour to put patients first or the NHS going backwards under the Tories.”

But a Conservative source said: “On the back of a strong economy, we are promising the biggest ever investment in NHS buildings and technology, £10billion, that will help to transform the quality of care for patients.

“In truth the only way to increase funding for the NHS and our public services is to get the right Brexit deal in order to grow the economy, something only Theresa May can deliver.”