NHS hospitals are having to cut services because of the government's use of the private sector, according to health leaders.

A survey of health trust chief executives found concerns about the government's independent treatment centre programme, through which trusts pay the private sector to treat patients in order to cut waiting lists.

Of more than 100 chief executives surveyed by the Health Service Journal, three quarters said they felt the scheme was wasting money and almost 80 per cent said their organisations had had to reduce or give up work to support the programme.

Meanwhile, health secretary John Reid has pledged a further £95 million to reward family doctors who use electronic booking for hospital appointments.