ENGINEERING giant Carillion’s collapse will delay the construction of two “desperately needed” hospitals for several years, an official report found yesterday.

The 646-bed Royal Liverpool, which was set to open in 2017, is forecast to be completed more than five years late, according to the National Audit Office.

With no opening date set, it is now predicted the hospital will cost more than £1 billion to build and run, compared with an original cost of £746 million, said the NAO.