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NHS campaigners have hailed victory after a reform they claim could be a "Trojan horse for privatisation" was delayed.

Ministers finally confirmed that they will delay laws that allow them to set up American-style Accountable Care Organisations (ACOs) after public pressure and two legal battles.

Critics claim ACOs could allow more private involvement in the health service due to their complex structure, despite the government repeatedly insisting they will do nothing of the sort.

NHS chiefs bowed to activists, including from world-renowned physicist Prof Stephen Hawking, last month and announced a fresh 12-week consultation into ACOs.

But at the time Jeremy Hunt, the Health Secretary, refused to say the laws that allow ACOs would be stopped until that consultation finishes.

(Image: Christopher Furlong)

Now Tory ministers have belatedly confirmed they WILL wait until the consultation has taken place.

Health Minister Caroline Dinenage told MPs: “No regulations will be laid until that consultation has been completed.”

It means the laws, which had been intended for this month, cannot be introduced until after the end of the consultation which finishes in mid-April.

Jonathan Ashworth, Labour’s Shadow Health Secretary, said: “It made no sense for the Government to be forcing through changes to regulations behind closed doors, while NHS England carried out their consultation at the same time.

"It’s only right that Ministers have bowed to pressure from campaigners and pushed these changes back.”

Professor Allyson Pollock of JR4NHS, one of the two legal challenges against ACOs, said: "We are very pleased that the government has taken the sensible course of delaying these regulations.

(Image: PA)

"We hope very much that this signals the beginning of the end of the attempt to introduce ACOs through contracts."

Mr Hunt had previously come under fire from Tory MP Dr Sarah Wollaston, the chair of the Commons Health Committee.

She told him: "There is a great deal of anxiety out there that this is going to be a mechanism for privatising the NHS."

She added: "Once the regulations are there they’re there... I think there would be great value in us actually seriously considering the concerns raised."

Mr Hunt insisted last month: "The ACO contract arm is not a vehicle for privatisation of the NHS or any increased involvement of the private sector.

"That is not what is planned.

"It’s probably if anything going in the opposite direction."

(Image: Daily Mirror)

A statement by NHS England said: "An ACO is not a new type of legal entity and so would not affect the commissioning structure of the NHS.

"An ACO would simply be the provider organisation which is awarded a single contract by commissioners for all the services which are within scope for the local accountable care model.

"Any area seeking to use an ACO contract would need to comply with longstanding public procurement law."