Conservatives are warning that up to 20,000 jobs are under threat in the National Health Service (NHS) as a funding crisis begins to bite.

They say that around one in three hospitals are facing cash crises and many are beginning to lay of staff to make ends meet. Around 1,000 posts have been axed this week alone as managers seek to make cutbacks to remain within budget.

Shadow Chancellor George Osborne said: "Mr Brown always claims the NHS is safe in his hands. But following the latest of his NHS cuts, we see that this is plainly untrue.

"All over the country, we're seeing NHS cuts as a direct result of Gordon Brown blocking reform. We've got to stop Brown's NHS cuts - sacked workers and cancelled operations - by getting rid of the bureaucracy that's holding the NHS back."

Mr Brown's Budget speech made few references to the NHS although he pledged to increase nurse's pay above the average 2.25%.

Conservative Leader David Cameron claimed: "You can tell how big the crisis in the NHS is. The health service didn't even get a mention."

The Chancellor rebutted that an extra £6 billion was to be invested in the NHS over the next two years.

However, this week it emerged that the lost of hospitals axeing posts was lengthening due to financial problems.

The Royal Free Hospital in Hampstead is to axe 480 jobs. The County Durham and Darlington NHS Trust is to cut 700 jobs over the next two years.

Health Secretary Patricia Hewitt has said that only few Health Trusts hospitals were in the red. She said that "efficiency savings" were all that were required.

However, the Royal College of Surgeons said that they were concerned that the level of staff cuts will impact on patient care.

(SP)