Campaigners battling to keep consultant-led maternity and children's services at a general hospital have expressed their disappointment after the Health Secretary rejected an appeal for an independent review.

Jeremy Hunt said Hambleton, Richmondshire and Whitby clinicial commissioning group (CCG) should launch a formal public consultation exercise over its scheme to downgrade the service at the Friarage Hospital, in Northallerton, to a midwife-led unit.

However, the consultation will be delayed until the conclusion of an examination of clinical health services, which include children's and maternity services, by CCGs in Durham and Tees Valley.

Despite being repeatedly pressed by Richmond MP William Hague for a full independent review of the plan, Mr Hunt said he agreed with the advice of the Independent Reconfiguration Panel (IRP).

It concluded that it would only be necessary for the CCG to consult on its two preferred options.

These include creating a paediatric short stay assessment unit and midwifery-led maternity service with full outpatient and enhanced community service provision or to develop paediatric outpatient services and enhanced community services and a midwifery-led unit at the hospital.

In a letter to Mr Hunt, Lord Ribeiro, chairman of the IRP, said: “The panel considers that the draft document produced [by the CCG featuring two options] in preparation for formal consultation… could usefully be adapted to satisfy all requirements.

“In such circumstances, a clear explanation of the case for change is required.

“If it is considered that Option 1 [retaining the consultant-led service] is not viable, it is important to demonstrate why it is not viable by providing suitably detailed analysis to show what it would mean in terms of sustainability, affordability and quality.

“The consultation may also wish to invite new options and not limit respondents to those listed.”

Campaigners who have battled for 18 months to create a “unique solution” to keep consultants at the hospital’s unit said they were bitterly disappointed.

Mr Hague led thousands of protestors, from across the 75-mile wide catchment area the hospital serves, on a march through Northallerton last May to highlight the depth of anger at the CCG’s plan.

Last night, a spokesman for Foreign Secretary Mr Hague said he was travelling and unable to comment.

Councillor John Blackie, whose Upper Dales ward will be among the areas hardest hit by the decision, said: “It does look like the end of the road for a first class centre of excellence that the Friarage is.

“The Secretary of State has delivered a terrible blow, meaning the community is now facing proposals which they have overwhlemingly rejected and the local NHS getting their own way.”

Dr Vicky Pleydell, the CCG’s clinical chief officer at NHS Hambleton, Richmondshire and Whitby CCG said she was delighted with the decision.

She said: “We are mindful of the Securing Quality in Health Services project, which is looking at clinical quality standards to be commissioned by CCGs in Durham and Tees Valley in acute hospital services in the future. “It would be unwise to start our consultation until we fully understand the scope of this project."