Later, Labour peer and former Health Minister Lord Warner spoke in support of greater competition in the health service.

BBC: Health and Social Care Bill part two

Earlier, Labour peer and former health minister Lord Warner accused ministers of "throwing all the organisational cards up in the air" by getting rid of SHAs before financial challenges to NHS had been dealt with.

BBC: Labour loses bid to delay SHA abolition

Shadow health secretary John Healey and Labour former Cabinet minister David Blunkett welcomed the announcement.

BBC: Lansley seeks to reassure on children's hospital funds