A multi-million pound project to make Newham the first place in the country to set up a partnership to own and build integrated health and care facilities is a step closer to reality.

Newham Council has agreed in principle to set up a joint venture with local health partners, and to work in partnership with NHS Newham Clinical Commissioning Group (CCG), East London Foundation Trust (ELFT) and others to create state-of-the-art facilities combining traditional GP surgeries with advanced medical, community, social care and mental health support.

Under the project, new facilities will be developed across the borough with some health and wellbeing services moving from Newham University Hospital into the community to ease the pressure on the hospital and avoid people having to travel between multiple sites.

The scheme will also support the recruitment and retention of healthcare professionals in the borough by creating around 180 new affordable homes for rent specifically for health and social care workers as part of the new developments.

Newham Council’s cabinet has agreed to the setting up of an organisation to manage the project on behalf of the council and health partners when the plans have been finalised.

Councillors also agreed in principle to support it with £2m start-up funding subject to equal match funding. The council is working with health partners to identify ways to match the investment to allow the partnership to begin to buy sites, develop plans and secure grant funding.

The mayor of Newham, Sir Robin Wales, said: “If we are to meet the challenges of the future we must act now.

“We are looking to develop an innovative approach which will ensure we meet the future demand on our health and care services and provide the best possible support for our local communities.

“This agreement is the starting point, but once again this is an example of Newham leading the way with our partners in health, to find solutions for the issues our communities and services are facing.”

The management company could be established by October, with the full business plan set to be completed by the end of this year.