Future Fit: MP Lucy Allan wants to look again at new hospital between Telford and Shrewsbury

Ms Allan, who has been a staunch opponent of Future Fit plans which would see Princess Royal Hospital in the town downgraded, has said there should be a rethink after leaked documents suggested that costs for the project have risen by almost 60 per cent.

The papers indicate that the costs have gone up from £312 million to £498m – £186m more than first anticipated.

Now Mrs Allan has suggested that the level of increase means that the options should be reconsidered.

In doing so she has also opened the door on a potential new hospital being built between the towns off the M54.

It is a proposal that has previously been suggested by David Sandbach, former chief executive of Telford’s Princess Royal Hospital (PRH), and Dr Laura Davies, who was Labour's candidate for the Shrewsbury & Atcham seat until she was ousted by her own party weeks ahead of last month's general election.

Dr Davies's support for the plan was crucial in her party's decision to remove her, as it went against Labour policy to keep A&Es open at both PRH and Royal Shrewsbury Hospital (RSH).

Ms Allan MP has also reiterated her opposition to the current plan that would see RSH become the county's only full 24-hour A&E department, and also home to consultant-led women and children's services – currently based at Telford.

Writing on Twitter Ms Allan said: "If we’re going to spend £500m+ on hospital care in Shropshire, it’s time to rethink options, including new standalone critical care hospital on M54. 'Shrewsbury takes all (including Telford’s Women & Children’s Centre & 24hr A&E)' will not be an option our new Govt can support."

Mr Sandbach has been critical of the fact the costs of the project have been allowed to increase.

He said there must have been a number of errors, including a failure "to understand the concept of building cost inflation" and to check costings on a regular basis.

He said health chiefs now have the option of moving on with the scheme, trying to negotiate a better deal with NHS bosses – which recognises the inflation – or to consider other options.

Mr Sandbach said one option would be to "use the £312m to open a 320 bed emergency hospital between Shrewsbury and Telford and use PRH as a planned hospital facility but with more intensive rehabilitation beds and facilities on that site".

The Shrewsbury and Telford Hospital NHS Trust, which runs PRH and RSH, has declined to comment on the details revealed in the leaked document.