MPs are calling for an independent inquiry to explain why the county's major hospital trust is facing huge debts.

But Health Minister Stephen Ladyman has answered David Cameron and Tony Baldry's concerns by accusing managers at the Oxford Radcliffe Hospitals NHS Trust of financial "failure".

The argument, during a House of Commons debate on July 13 called by Witney MP Mr Cameron, comes six weeks after the trust revealed cost-cutting measures, including possible redundancies, to combat a predicted £30m deficit.

Responding to Dr Ladyman's comments, ORH managers said they shared a "common" goal with the minister, who was supporting them to tackle the overspend, which is now expected to reach £17m.

Mr Cameron called for a full inquiry into the ORH, responsible for for Oxford's John Radcliffe Hospital, Churchill Hospital and Radcliffe Infirmary, and The Horton, Banbury, and how it was funded, warning it was being asked to do too much with too few resources, and was affecting other areas of the county's NHS.

He said: "The JR does seem to be at the heart of the whole problem. This big financial deficit causes a lot of problems elsewhere.

"People are left asking why is it we're getting less when all this extra money is being put into the NHS?"

He warned that savings demanded by the Government caused a "significant risk" of service cuts.

Supporting his Conservative colleague, Banbury MP Mr Baldry said the ORH was stuck in a permanent cycle of cash crisis.

He said: "Clearly there is some issue there that needs some outside objective investigation."

But Dr Ladyman demanded the trust stop running up multi-million pound deficits.

He insisted the NHS in Thames Valley was being given more cash than ever, but fired a broadside at ORH managers.

He said: "The issue of financial balance at the JR is important and it is causing pressures on the local health economy.

"It has still not managed to address the financial overspend -- estimated this year at £17m -- and they have to put that right.

"Why should some other area that has managed its budget properly finance the failure to get a balance in another area?"

MPs were told Thames Valley received 52 per cent more health funding than in 1997 -- up from £594 per person to £904.

He also said the area's NHS had been massively improving its performance, slashing waiting times and delivering top quality care.

In a statement, the ORH said: "The Government and ORH have a common objective of remedying the long-standing financial problems of the trust. The minister recognised the progress made by the trust in balancing its books, with support, in 2003/4.

"He also acknowledges that work is continuing to bridge the remaining gap of about £17m, to get the trust into sound long-term financial health."