Plans to build a new £8m super-surgery for the Cardinal Practice in north west Ipswich have been abandoned after costs rose making it unaffordable.
That means patients across Whitton, Whitehouse, and Claydon will have to continue using existing surgeries in Chesterfield Drive and Norwich Road.
The practice had been due to move to a new super-surgery on the former Tooks site at the junction of Bury Road and Old Norwich Road next year.
The land is owned by Ipswich Borough Council would build and own the surgery, and rent the site to the practice.
The details were agreed in 2019 - two years after the project was first unveiled - but the need for further NHS checks and then the outbreak of the Covid pandemic meant it wasn't until March 2022 that the final plans were unveiled.
By then costs had increased and despite detailed plans being lodged with council planners, a final decision was never confirmed.
Now a statement from the borough and NHS has said: “The NHS Suffolk and North East Essex Integrated Care Board and Ipswich Borough Council are deeply disappointed that the full relocation and new build plan at the Tooks site has now become unaffordable for the NHS, with costs having increased significantly over the past three years.
“Despite this setback we remain determined to work in partnership to find an alternative, affordable solution that will deliver improved primary care facilities for the patients and practice team in north west Ipswich.”
Council sources have privately expressed deep frustration at the decision.
One said: "We were all ready to go in 2019 and if it hadn't been for the NHS dragging its feet we would have had the surgery up and running well before now.
"The fact is that inflation in the construction sector has really taken off over the last few years. The borough was ready to go - but every delay pushed the cost up until we got to this point!"
It is understood the council has no immediate plans to sell the land earmarked for the surgery or find a new use for it. And not everyone has given up on the project.
One local Labour councillor said: "(Chancellor) Rachel Reeves has said that she will look at boosting investment.
"Well investment has to be about more than roads and railways - investment in people's health has to be at the top of the list."
Officials from the practice and the NHS are to meet next week to look at other ways of improving the service.
The Cardinal Medical Practice was formed in 2020 with the merger of the Deben Road, Chesterfield Drive, and Norwich Road practices.
Almost all clinical work is done at the Norwich Road and Chesterfield Drive surgeries with administration based at Deben Road.
The Cardinal Medical Practice has about 30,000 patients registered with it and is the largest in Ipswich.
Central Suffolk and North Ipswich MP Patrick Spencer represents most of the patients at the practice.
He said: "Once again, this is desperately disappointing news – the new GP surgery on the site of the former Tooks Bakery is long overdue and this further setback has understandably caused anxiety for local residents.
"Since the closure of the Claydon and Barham GP surgery, this has added further pressures to the local healthcare system and a number of patients have already been in touch with me directly to ask for my help.
"As soon as I was made aware of the news this morning, I sought an urgent meeting with the Chief Executive of the Integrated Care Board Dr Ed Garratt.
"During the meeting, I set out my concerns about this latest stumbling block and what might be done to expedite delivery of the new surgery.
"I was reassured to hear that work is already underway to identify suitable alternative premises as a matter of priority and I understand that further talks will take place later next week."
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