Plans for a new NHS-run coffee shop at Telford’s hospital could force its League of Friends outlet out of business – despite it raising more than £1 million for the hospital, it was claimed today.

The Shrewsbury and Telford Hospital NHS Trust has opened a Coffee City outlet at the Royal Shrewsbury Hospital and plans another for Telford’s Princess Royal Hospital (PRH) this year.

But Alan Millward, Friends of the PRH chairman, said: “Trustees, volunteers and supporters of the friends are deeply concerned about the new Coffee City outlet and its plans to start charging rent for the space occupied by the friends.

“Although the friends appreciate the trust is going through a difficult financial period, it is hard to understand why they are alienating a charity that raises so much money for them.

“If they want us out of business, this is the best way to do it.”

Hospital trust bosses refused to say how much it would cost to set up the shops, but said the idea was to invest some capital funds to save some revenue cash.

Mr Millward said they had been told by hospital bosses the trust planned to start charging the fundraising group rent for the League of Friends coffee shop space.

But this has left members of the volunteer-run charity furious, as they have paid for the conservatory and office to be built, along with a refurbishment in 2004.

Mr Millward said the charity work had saved the hospital more than £200,000.

Trust chiefs claimed the two new NHS-run coffee shops are to boost funds for the cash-strapped trust, but denied they would affect the Friends’ fundraising efforts.

Mr Millward added: “Negotiations are currently continuing with regard to the rent situation, but we are dismayed we haven’t been kept informed of the plans already afoot for the Coffee City outlet.”

Justin Woolley, hospital trust spokesman, said: “We are looking to introduce a coffee shop at Telford. The proposal is to put the Coffee Outlet near to the canteen. It is a takeaway facility.”

James Hodson, of Shrewsbury Friends, said it was trying to work in co-operation with the trust and did not see the shop as competition.

By Kirsty Marston