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Judges at the Court of Appeal ruled Jeremy Hunt had breached provisions of the National Health Services Act 2006. It is a serious setback for the Health Secretary because the case involves the first legal testing of a new Government procedure for dealing with failing NHS organisations.
The Court of Appeal's ruling that Health Secretary Jeremy Hunt does not have the power to implement cuts London's Lewisham Hospital was met with cheers from supporters of the popular hospital.
Three judges announced their decision on the second day of a hearing in London.
Lord Dyson, the Master of the Rolls, sitting with Lord Justice Sullivan and Lord Justice Underhill, gave their decision in an appeal brought by the Government over a High Court judge's ruling in July that Hunt's proposed cuts were "unlawful".
The Court of Appeal has ruled that Health Secretary Jeremy Hunt did not have the power to implement cuts at Lewisham Hospital in south east London.