A cash-strapped hospital trust has been told by the Prime Minister it will not be bailed out by the Government.

Tony Blair acknowledged in response to a question from Eastbourne MP Nigel Waterson there were "problems" at East Sussex Hospitals NHS Trust .

But he said the added investment from the Government in NHS health services had to be subject to financial accountability.

Mr Blair said it would not be acceptable for healthcare providers in debt to go cap-in-hand to the Government to bail them out.

Controversy has broken out at the trust, which runs Eastbourne District General Hospital and the Conquest Hospital in St Leonards, over plans to cut the level of children's services at Eastbourne.

It followed the announcement of a possible downgrading or closure of maternity and paediatric services at the hospital.

In his question to Mr Blair, Mr Waterson also raised concerns that the number of beds blocked has climbed to 100.

Mr Waterson said: "Is the Prime Minister aware that, since I last raised it with him, my local NHS has gone from bad to worse?

"There are now proposals to close the maternity unit, children's ward and special care baby unit and bed-blocking in the trust is now up to 100 beds."

Mr Blair said: "It is also true, of course, that all the waiting times and waiting list targets have been met but I agree that there are real problems in the health care organisation in (Mr Waterson's) constituency, where there is a very large deficit.

"However, it is important to recognise that we have to make sure that the vast additional investment that has gone in is subject to proper systems of financial accountability.

"We will work with the people organising healthcare in his constituency but we cannot say: Whatever your deficit, the Government will come and bail it out'."

Afterwards, Mr Waterson said: "I was disappointed but not surprised by the Prime Minister's comments.

"But at least he recognised we had problems locally. Meanwhile my campaign to save these essential facilities is gathering strength with every day that passes."

More than 1,000 have signed a petition raised by Mr Waterson against possible cuts.

The trust has said a final decision has not yet been taken and full public consultation will take place before it is.