The government has pledged £500 million of funding to Epsom and St Helier Hospital Trust.
The trust said the money will be spent on refurbishing both Epsom and St Helier Hospitals.
A separate facility dedicated to emergency cases and high-risk patients will also be built at Epsom, St Helier or a new location in Sutton, which will account for 15% of the trust’s services.
Mitcham and Morden MP Siobhain McDonagh (pictured above) said: “These funds will downgrade at least one or both of St Helier and Epsom Hospitals, moving all acute services including major A&E and consultant-led maternity services to a new facility.
“Decades of identical plans indicate that this will be in Belmont – away from those most in need and placing intolerable pressure on nearby St George’s.
“These latest funds must be spent where they are needed most: improving St Helier on its current site.”