Kier will start main works on site this month and is scheduled to complete in 2024.

Demolition and enabling work has been taking place over the past eight months to clear the hospital site in preparation for the main build.

The five-storey Acute Services Block and New Ward Block will house modern and enhanced facilities for maternity services, a level 3 neonatal intensive care unit, critical care and operating theatres.

David Carter, Chief Executive of Bedfordshire Hospitals NHS Foundation Trust said: “We are delighted to receive final confirmation of funding for the Acute Services Block and New Ward Block at the L&D. This has been many years in the planning but the project is now a reality with builders on site in the coming weeks.

“This is a huge boost for staff morale as these buildings will provide modern facilities, allowing our teams to continue delivering excellent care.”

Minister for Health, Edward Argar said: “We have given Bedfordshire Hospitals NHS Foundation Trust the green light on their plans to upgrade Luton and Dunstable Hospital, with £168.6m of funding.

“The Acute Services Block and New Ward Block will house maternity and neonatal services, surgical theatres and critical care wards with new technology to benefit patients and staff, increase capacity and help tackle backlogs.

“We’ve backed the NHS throughout the pandemic with record levels of funding and we’re improving health infrastructure across the country including delivering 40 new hospitals by 2030 and over 70 hospital upgrades to ensure NHS staff can keep providing the care and treatment people need.”