Campaigners fighting to save community hospitals across south Oxfordshire are pinning their hopes on a Government cash lifeline.

Yesterday, the Government pledged an extra £750m for community hospitals, saying it should help save some of the smaller hospitals threatened with closure.

New guidance is also being issued to primary care trusts to prevent any "rush" to close community hospitals and to give patients a louder voice.

In Oxfordshire, Henley and Wantage hospitals have been proposed for closure, Didcot could become a maternity unit, Abingdon could be downgraded to a day care centre and Wallingford could be expanded into a 60-bed unit.

Thirty thousand people signed a petition organised by the mayors of Didcot, Wallingford, Abingdon and Wantage to save their hospitals.

Consultation on planned changes to the hospitals is set to be launched in September.

Didcot mayor Mike McNulty said he was encouraged by the Government's latest announcement but added: "The minister needs to alert the PCT to the fact the Government believes in community hospitals, as do local communities."

Jenny Hannaby, chairman of the Save the Wantage Hospital Campaign, said the Government's announcement had brought fresh hope.

"If there's money there, then it's never too late," she said.

"We've always been told that Wantage wouldn't close just like that, so I think this is excellent news.

"It should give the PCTs an extra breathing space and sort their finances out."

The treasurer of the Abingdon Hospital League of Friends and town councillor Pat Hobby said it was interesting that the news had come after the massive number of petitions handed in to PCTs and Downing Street.

She added: "It shows that the ordinary' people perhaps still have some power over what happens in their community."

PCTs will be invited to bid for a portion of the £750m pot to improve services or build new community hospitals.

But any funding in south Oxfordshire could be spent on plans for fewer 'enhanced community hospitals'.

Dr Stephen Richards, who chairs the South West and South East Oxfordshire PCT's professional executive, said: "We await the details with interest and will be applying to help with our plans for enhanced community hospitals."

More than 650 people are expected to pack a Banbury church tonight to hear about plans for the future of The Horton Hospital.

The public meeting is the first stage of consultation on plans to reduce services at the hospital.

It starts at St Mary's Church, in Horsefair, at 6.30pm.