A £21m hospital redevelopment scheme took a major step forward today as work officially got underway on the two-year project.

The Friarage Hospital in Northallerton will be transformed by the work and taken firmly into the 21st-century.

And at a ceremony on the site yesterday the chair of South Tees Hospitals NHS Trust, Glenys Marriott, and chairman of Hambleton and Richmondshire Primary Care Trust, Sue Young, formally cut the first turf.

The trust has worked closely with its healthcare partners, architects, staff and patients in an attempt to create high standards if care and comfort in a welcoming environment and building work should be completed by the summer of 2006.

The new hospital block will cover paediatrics; a neonatal unit, women's health and pathology.

There will also be a retail unit for the Friends of the Friarage, a new hospital street and service gantry and the main entrance will be completely refurbished.

Under a separate initiative the number of endoscopy rooms in the day unit will also be increased - for which the Friends of the Friarage launched a £150,000 fund-raising drive to kit out.

Mrs Marriott said: "It's always been our priority to get core clinical services out of wooden huts and into an environment more conducive to healthcare.

"The new hospital block will provide a valuable service to the local population which, I know, holds the Friarage very close to their hearts. "We're very proud to be making this happen and in having the support of so many people - the staff, patients, and health colleagues - not forgetting the Friends of the Friarage and volunteers who have done so much over the years.

"This ceremony marks a new milestone in the Friarage Hospital's rich history and I'm delighted to be turning the first sod of earth with Sue."

Already work has started on demolishing the old linen bank and the first building to be complete will house the switch room and medical gases.

Next will be the new shop for Friends of the Friarage and the main construction programme will start early in the New Year.