PLANS to replace Fair Mile Hospital in Cholsey with a multi-million pound hospital in Reading have moved forward.

The Government has decided that West Berkshire Priority Care Service NHS Trust's £25m scheme, which also involves replacing some of the psychiatric hospital's services with community facilities, can seek money from the private sector.

The trust's communications manager, Chris Birdsall, said they were now confident it would he able to go ahead with its plans to build the new hospital by 2001.

"Obviously, we are delighted about it. It's a major step forward," he said.

"We won't close Fair Mile until the new hospital is built and when we have the community facilities."

The trust will now advertise for bidders for the scheme, he said.

Fair Mile currently has about 200 patients.

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