The £219 million redevelopment of St Helier Hospital has taken a £12.7m leap forward.

The approval by NHS London of the next tranche of funding for the redevelopment means work to demolish Ferguson House, which currently houses most of the hospital’s outpatient clinics, is a step closer.

The £12.7m funding is now subject to final approval from the Department of Health.

The majority of the services and staff currently based at Ferguson House will temporarily be moved to Sutton Hospital.

To enable this, a large section of the Sutton site will be upgraded, with work due to start in August with hospital staff expected to move into Sutton Hospital in October.

Ferguson House’s demolition is due to start in late 2013.Construction work will begin in early 2015, with the new building due to open in late 2017.

Chief Executive, Matthew Hopkins, said: “Today’s announcement takes us a step closer to being able to get the ball rolling on one of the most exciting elements of the St Helier redevelopment – demolishing the part of the site that will house the brand new hospital building.

“St Helier is obviously a very popular hospital, delivering a high level of care to more than 409,000 patients every year, but the fact is, it’s an old building and is in need of redevelopment.

"Our patients and their loved ones deserve the very best from us, and this huge cash injection will allow us to continue the great job we’re doing.”

Paul Burstow, MP for Sutton and Cheam and care minister, said: “The £219 million transformation of St Helier Hospital is the biggest investment into local healthcare for a generation. I, along with hundreds of local patients and residents, look forward to the demolition starting and clearing the way for the rebuild."

Tom Brake, MP for Carshalton and Wallington, said: “It is fantastic to see the redevelopment project moving forward.

Siobhain McDonagh, MP for Mitcham and Morden, said: “I was at the hospital in 2010, when the initial plans were given the go-ahead by Government. Since then, I’ve watched as progress has developed – from the first surveys taking place to the unveiling of new designs. It’s great to see more progress and I look forward to seeing the bulldozers arrive on site.”