Bishop’s Castle mayor Councillor Jayne Carroll said Coverage Care was proposing the development and had negotiated a 10-year lease with the local Primary Care Trust.

The length of that lease was twice as long as the five-year agreement that campaigners in Ludlow were battling to secure.

Councillor Carroll said the current Coverage Care/Stone House plan should be overwhelmingly supported by the town.

She said: “The plan gives us services for the elderly and infirm in this area, which are much better than we have at the moment.

“It gives us 12 to 15 NHS hospital beds staffed by nurses. All the nurses currently employed at Bishop’s Castle Hospital will be offered jobs looking after patients in the NHS beds in the new building with the same salaries, increments and pensions that they have now.

“They will also have to look after patients in the new 15-bed nursing home.”

The plans have been presented to locals and have won support from some residents and councillors across the political spectrum.

Councillor Carroll added: “The town will, for the first time, have nursing home beds. The plans include the building of 20 flats for elderly couples, at least one of whom needs care. Couples will at last not have to be separated when one of them needs full time care.

“It is understood that people are worried by change but some changes are good. Bishop’s Castle has fought hard to keep its hospital over the years and under the plan it is keeping hospital beds and services in the town.”

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