Government funds coming into Cambridgeshire will provide a £100 million children’s hospital on the Addenbrooke’s Hospital site in Cambridge and £25 million to expand Hinchingbrooke Hospital, Huntingdon.

Health minister Matt Hancock said there would also be a further £19 million to improve health and care facilities at Addenbrooke’s.

NE Cambs MP Steve Barclay, who was minister of state for the department of health and social care until last month when he became Brexit minister, said: “The funding to expand Hinchingbrooke Hospital will deliver adequate and safe bed capacity and ensure the estate is compliant and safe.

“This is a very welcome development which follows on from the recent work at North Cambs Hospital which has just completed the first phase of an £8million improvement.

“It is important that we continue to increase the number of services offered to treat people locally, and this investment will provide better services for patients, integrate care better and renew aging facilitates.”

Built on land adjacent to Addenbrooke’s and the Rosie Hospitals, the new children’s hospital will bring together some of the world’s top scientists to explore new ways of diagnosing and treating some of the most challenging diseases of childhood.

Mapping the whole human genome and understanding the genetic basis of disease and recovery is central to the hospital’s vision. It aims to make an important contribution globally to the development of children’s healthcare while providing world class care for families in the east of England.

The project is a partnership between Cambridge University Hospitals (CUH) NHS Foundation Trust and Cambridgeshire and Peterborough NHS Foundation Trust. Tracy Dowling, chief executive of Cambridgeshire and Peterborough NHS Foundation Trust, said: “Physical and mental health services are intrinsically linked, and this is the most incredible opportunity to bring them under one roof for the benefit of young people and their families.

“It is also great news for those who have worked so hard for so many years to develop outstanding services for some of the children and young people in the region who are most in need.”

Roland Sinker, CUH chief executive, said: “We are united as partners behind the vision for this hospital which is to bring together mental and physical health and radically transform healthcare for children and their families in this region.”

Professor of paediatrics at the University of Cambridge David Rowitch said: “It is time to bridge the divide between physical and mental health and move away from silo working. With strengths across the board from genomics to complex medical care, child and adolescent psychiatry, Cambridge is perfectly positioned to lead by example.”