A HAMPSHIRE hospice has been forced to delay much of its £2.5m expansion plan because of the economic crisis.

Oakhaven Hospice, Lymington, has revealed that proposals to enlarge its in-patient unit and build an education centre for other health care professionals have been put on hold.

The hospice has secured all the money it needs to proceed with the redevelopment scheme, which received planning permission in May last year.

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However, staff fear that fundraising could nosedive in the next few months, forcing them to use some of the cash to finance existing services.

Chief executive Andrew Ryde said: “In the current economic climate we felt it was prudent to postpone part of our new development until we were confident that our income and fundraising generation was not going to be seriously affected.

“At this moment in time it is important that we manage our financial resources to ensure total continuity of all our services.”

However, the rest of the expansion scheme – a £500,000 project to redevelop the day hospice – is due to start in the next few weeks.

It has been made possible by a £250,000 grant from the Department of Health and the generosity of the hospice’s founder, Phoebe Coates, who died in 2006.

Mr Ryde added: “Mrs Coates worked tirelessly for Oakhaven over many years and her final legacy was to leave us her family home, Pennington Chase, so that we could enhance our day hospice facilities.

“The importance of the day hospice to the range of services we offer our patients cannot be underestimated. This will make a big difference.”

A decision on the remainder of the redevelopment plan is likely to be taken later this year.

The hospice wants to increase the number of beds in its in-patient unit from eight to 12 and build a 50-seat education centre for GPs and other NHS staff involved in the care of terminally ill patients.

Oakhaven is not the only Hampshire hospice that has been hit by the economic crisis.

As reported in the Daily Echo, Naomi House at Sutton Scotney, near Winchester, which cares for seriously ill children, has £5.7m of its cash locked in a failed bank.

The Government rejected the hospice’s plea for financial help.