Mechanical diggers have moved in to start work on the long-awaited new community hospital for the North-East.

Prime Minister Tony Blair cut the first turf to mark the start of building work on the £8m development in Sedgefield last week.

Construction work has started and it is hoped that staff and patients will be able to move into the accommodation within 12 months.

The 42-bed hospital will replace the old hut wards, which date back to the Second World War.

The one-storey building is being built on the outskirts of the village and will be surrounded by gardens and secluded courtyards.

As well as the services currently provided at the old community hospital, the new facility will have an extended x-ray department with an ultrasound service.

Outpatient and other services such as two-day hospitals, physiotherapy, occupational therapy, dietetics and foot health will also move into the new building.

Paul Trippett, chairman of South Durham Health Care NHS Trust, said: "Local people and hospital staff have been waiting a very long time for their new hospital.

"Staff at Sedgefield Community Hospital work hard caring for patients in less than ideal surroundings, but very soon that will all change and the quality of the facilities will match the quality of care provided."

The hospital is being built under the Government's Private Finance Initiative. The trust's partners are Normanby Healthcare Projects Ltd, a consortium consisting of Clugston Ltd and The Royal Bank of Scotland.