From: FOI (Royal Devon University Healthcare NHS Foundation Trust) rduh.foi@nhs.net
To: Susie Colley (chair@tqcc.co.uk), John Govett, Mark Hackett, Trust FOI, NHS Devon ICB Involve, James Murray MP
CC: Cat Johns (Torbay Council)
Reference: RDF4347-26 (Centralised pathology hub proposal)
Signed by: Adrian, Freedom of Information Team

Dear Mrs Colley,

Thank you for your request for information, dated 6th June. This is being managed under the terms of the Freedom of Information Act 2000.

Our response to your request for information will be sent to you promptly and in any event no later than 03/07/2026, which is 20 working days after we received your request.

Please quote the FOI reference number in the subject box in any future messages.

Kind regards,

Adrian
Freedom of Information Team
Royal Devon University Healthcare NHS Foundation Trust

Note: RDUH is the first of the three recipients of the 6 June letter to formally log it as an FOI. The Trust (TSD) and NHS Devon ICB had not issued references or acknowledgements at the time of writing.

From: Susie Colley (chair@tqcc.co.uk)
To: Malcolm Coe (Torbay Council), Ian Rowswell (Torbay Council)
CC: Andrew George MP, Andy Burnham MP, Cat Johns (Torbay Council), Layla Moran MP, Danny Beales MP, Beccy Cooper MP
Subject: Gadeon House, Exeter - Proposed £7.5 Million Council Contribution, Prudential Borrowing, Direct Award Procurement, and Potential Impact on Pathology Services Across Devon

Good evening,

I am writing to seek clarification regarding the Council's published proposal to support the establishment of a regional pathology laboratory at Gadeon House, Exeter, involving a Council-funded contribution of up to £7.5 million and the proposed direct award of fit-out works to Devon Contractors.

1. Total Project Cost and Funding Structure. The published information states that RDUH will contribute approximately £2.5 million; the Council may contribute up to £7.5 million through prudential borrowing; and the Council intends to appoint Devon Contractors through a direct award process. Please confirm the total anticipated capital cost; the detailed breakdown of all project costs; what specific works are included within each contribution; if refurbishment costs are materially lower than £10 million, how the Council has justified a contribution of up to £7.5 million; whether an independent cost consultant verified the estimated project costs; and whether any value-for-money assessment has been undertaken.

2. Prudential Borrowing and Financial Risk. Please provide the amount of borrowing proposed; the borrowing term and interest assumptions; the projected total repayment cost; the financial model demonstrating that rental income will fully service borrowing; details of any sensitivity analysis on interest rate changes, construction cost overruns, inflation, delayed occupation, and early lease termination; the Council's estimated financial exposure should the project fail to proceed; and any independent review of the financial model.

3. Lease Arrangements and Break Clause Risk. The lease term is 25 years with a tenant break option after 15 years. Please clarify the circumstances under which the break clause may be exercised; the mechanism by which any outstanding borrowing would be recovered; whether repayment obligations are secured by guarantee, bond, charge, or other enforceable arrangement; what financial assessment has been undertaken regarding early termination risk; and whether independent legal advice has been obtained on enforceability.

4. Why Is the Council Funding NHS Fit-Out Works? Why is the Council expected to contribute up to £7.5 million towards specialist pathology laboratory accommodation? Why is RDUH not directly funding the full cost of works required for its own operational purposes; what alternatives were considered; was direct NHS capital funding explored; and what public benefit assessment has been undertaken to justify the use of Council borrowing.

5. Existing Pathology Services and Service Reconfiguration. Which existing pathology laboratories are affected; is Gadeon House intended to replace, consolidate or supplement existing facilities; what pathology services currently provided elsewhere will be relocated; and will any existing pathology facilities close or reduce activity as a consequence?

6. Impact on Torbay Hospital and Local Services. Whether pathology services currently undertaken at Torbay Hospital will be transferred to Exeter; whether any laboratory functions will cease; whether any pathology staff positions are expected to relocate or be removed; whether urgent, emergency and same-day testing services will continue locally; whether any service impact assessment has been undertaken; and whether the Council reviewed these impacts as part of its decision-making.

7. Procurement and Direct Award Justification. The Council proposes a direct award under Schedule 5 of the Procurement Act 2023 on grounds of extreme and unavoidable urgency. Please provide the specific event giving rise to the alleged urgency; the date on which the requirement first became known; why the urgency could not reasonably have been foreseen; why a competitive procurement process was not undertaken; any legal advice relied upon; any procurement exemption reports or gateway reviews; and evidence that alternative contractors could not reasonably have undertaken the works.

8. Governance and Decision-Making. Please identify all officers involved in developing and approving the proposal; all committees or delegated decision-makers who considered it; any declarations of interest; any audit involvement; and any external consultants engaged.

9. Public Interest and Transparency. Please provide copies of the business case; options appraisal; financial appraisal; risk register; procurement justification report; delegated decision records; committee reports; legal and governance reviews where disclosable; equality or service impact assessments; and value-for-money assessments.

I look forward to your response.

Kindest regards

Susie Colley
Chair of the Torquay Chamber of Commerce and the Heart Campaign

From: Susie Colley (chair@tqcc.co.uk)
To: Joe Teape (Trust CEO), Martin Beaman, Trust FOI
CC: Andrew George MP, Andy Burnham MP, Cat Johns (Torbay Council), Jake Wallace (BBC), Layla Moran MP, Danny Beales MP, Beccy Cooper MP
Procurement reference cited: FIN26073

Good evening

Further to the information I requested on 12th June I am writing to seek clarification regarding Torbay Council's decision to provide up to £7.5 million of prudential borrowing to support the refurbishment and fit-out of Gadeon House, Exeter, as a regional pathology laboratory for the Royal Devon University Healthcare NHS Foundation Trust (RDUH).

According to procurement reference FIN26073, Torbay Council has agreed to support the establishment of a regional pathology laboratory at Gadeon House, with RDUH contributing £2.5 million and the Council providing borrowing of up to £7.5 million. The lease arrangement is reportedly for 25 years, with a break clause after 15 years.

My concern is that this significant investment appears to support the further centralisation of pathology services away from Torbay Hospital. I would therefore be grateful if you could answer the following questions:

1. What assessment has been undertaken regarding the impact of the Gadeon House pathology laboratory on existing pathology services at Torbay Hospital?
2. Will any pathology functions currently undertaken at Torbay Hospital be transferred to Exeter as a result of this project?
3. What guarantees can be provided that pathology capacity, staffing, investment, and associated services at Torbay Hospital will not be reduced as a consequence?
4. How does Torbay Council justify committing up to £7.5 million of borrowing to facilitate a regional laboratory outside Torbay?
5. Has any public consultation or impact assessment been undertaken regarding the effect of this project on healthcare accessibility and resilience within Torbay and South Devon?
6. What consideration has been given to the duties placed upon NHS bodies and public authorities under the Health and Social Care Act 2022, including the statutory emphasis on integration, reducing inequalities, and improving access to local healthcare services?

There is widespread public concern that the cumulative effect of service centralisation may undermine the availability of healthcare services within Torbay. While modernisation and collaboration between NHS organisations can be beneficial, such changes must not come at the expense of maintaining accessible local services for residents.

I would appreciate a detailed response addressing the points raised above and setting out the safeguards that will be put in place to protect healthcare services for Torbay residents.

Thank you. Kindest regards

Susie Colley
Chair of the Torquay Chamber of Commerce and the Heart Campaign

For the attention of: Chair and Board Members of Torbay and South Devon NHS Foundation Trust, and RDE Trust; Leader of Torbay Council
CC: John Govett, Mark Hackett, FOI teams, NHS Devon Involve, James Murray MP, Cat Johns (Torbay Council)
Date: 6 June 2026, 15:27

I am writing to seek urgent clarification regarding recent decisions that appear to have significant implications for healthcare provision across Torbay and South Devon, and to request disclosure of the documentation, assessments, business cases, minutes, and decision-making records that informed those decisions.

I understand that Torbay Council has agreed to provide a loan of £7.5 million to the Royal Devon University Healthcare NHS Foundation Trust in connection with proposals for a centralised pathology hub at Gadeon House, Exeter. At the same time, concerns have been raised locally regarding the future of pathology services at Torbay Hospital and the potential consequences for patients requiring urgent histopathology support.

Justification for the proposed £7.5 Million Loan. What was the specific business case supporting the decision to provide a £7.5 million loan to another NHS Trust? What alternatives were considered? Was any assessment undertaken comparing the cost of repairing, upgrading, or modernising existing pathology facilities at Torbay Hospital against relocating services to Exeter? If concerns relate primarily to the condition of the pathology building, why was capital investment in the existing Torbay Hospital estate not pursued as the preferred option?

Impact on Histopathology and Frozen Section Services. Can the Trust confirm whether the proposed pathology hub would result in the removal, reduction, or relocation of histopathology functions currently undertaken at Torbay Hospital? What assessment has been made of the impact on surgical procedures requiring frozen section analysis during operations? If frozen section services are no longer available locally, will patients be redirected to Exeter or Plymouth? What modelling has been undertaken regarding increased waiting times, delays in diagnosis, theatre utilisation, clinical risk, patient travel burdens, and workforce retention and recruitment? Will the Trust publish the full clinical impact assessment?

Substantial Change and Public Consultation. Can the Trust explain whether it has considered whether the proposal constitutes a substantial development of, or substantial variation in, health services? What legal advice was obtained? Was the Integrated Care Board consulted? Was the Health Overview and Scrutiny Committee consulted? Why has there been no public consultation to date?

Governance and Accountability. Who authorised the proposal in principle? Which committees, boards, executive groups, or governing bodies considered the proposal? On what dates were discussions held? What votes took place? What objections or concerns were raised? Please provide copies of Board papers, committee reports, business cases, financial appraisals, clinical impact assessments, risk registers, equality impact assessments, and minutes of all meetings where these matters were discussed or approved.

Edginswell Employment Land. I also seek clarification regarding the recent disposal of employment-designated land at Edginswell to Torbay and South Devon NHS Foundation Trust. Public reports indicate that governance processes may have been accelerated and that the intended use of the site is as a car park for a period of at least five years. Can the Council explain why employment land was released for this purpose; what alternative sites were considered; what economic impact assessment was undertaken; what governance process was followed; and which officers and members approved the transaction? Please provide the relevant reports, delegated decision notices, committee papers, and minutes.

These decisions have the potential to affect healthcare provision for hundreds of thousands of residents across South Devon for many years. I would be grateful if the requested documentation could be published or released at the earliest opportunity.

I look forward to your response.

Kindest regards

Susie Colley
Chair of the Torquay Chamber of Commerce and the Heart Campaign