Downing Street has warned the Department of Health not to squander the billions of pounds of extra spending which has been allocated for the NHS.

Speaking after a leaked memo from the head of the Number 10's delivery unit revealed there were "immense" risks involved, the prime minister's official spokesman said the government was not complacent and that the delivery unit was there to scrutinise policy and ask awkward questions.

Yesterday also saw an embarrassing rebellion by Labour MPs against the prime minister's flagship policy of foundation hospitals. Around 47 Labour backbenchers abstained from a key vote.