Kingston Hospital has finally won its battle to become a foundation trust.

The new status, announced by regulator Monitor today, gives the hospital greater independence from the NHS and the ability to borrow private capital to supplement its £200m budget.

It will no longer report to the Department for Health and will be able to keep any financial surpluses it makes as well as borrow money from banks or investors.

Public consultation first began on the plans in 2006 with the aim of achieving independence by 2008, but over the years repeated bids have been set back after financial problems and lack of support from the now defunct NHS Kingston.

Chief executive Kate Grimes said: “This achievement marks the end of a very long road for Kingston Hospital and I am delighted that after many years of hard work and commitment we have achieved foundation trust (FT) status.

"I would particularly like to thank all of our staff who have tirelessly supported the process to become an FT as we would not have achieved this without them."

The elected hospital governors, including seven from Kingston, have been meeting in shadow form since they were elected in November in preparation for the announcement.

Hospital chairman Ian Reynolds said: "My Board colleagues and I will be working closely with our new council of governors to ensure that we listen to and reflect on the needs of the communities and patients they represent when planning our future and developing our services."

At its March meeting the board was told Monitor had asked for more assurance including about the impact of a reconfiguration of south west London hospitals which could see a hospital lose and A+E and a maternity unit.

It was also told the hospital had agreed terms with Lloyds Bank to borrow working capital.

Foundation trusts have most recently hit the headlines when Mid Staffordshire NHS hospital went into administration, effectively being declared bankrupt, following serious failings in the care of patients.