NHS waiting lists fall for fourth month but remain above 7 million

International observers said the decision was being watched closely elsewhere, with several governments understood to be considering similar steps. "This sets a precedent," said a diplomat familiar with the discussions. "Others will now feel they have cover to act."

The situation remains fluid. Further statements are expected later this week, and sources close to the process said that the timetable could still slip if key parties fail to reach agreement on the outstanding issues.

"There is no perfect option here, but doing nothing was never one of them"

The roots of the current situation go back several years, to a series of decisions that were criticised at the time but attracted relatively little public attention. It was only when the effects began to be felt more widely that pressure for change started to build.

A vote is expected before the end of the month. If it passes, the first changes would take effect early next year, with the full package in place by 2028.

What happens next

The announcement came after weeks of speculation and follows months of negotiations between officials, industry representatives and campaign groups, several of whom had warned that any delay would carry significant costs.

Speaking at a briefing on Monday morning, a senior official said the decision had not been taken lightly. "We have looked at the evidence very carefully," they said. "There is no perfect option here, but doing nothing was never one of them."

Critics were quick to respond. Opposition figures described the move as "too little, too late", while campaigners argued that it did not go far enough to address the underlying problems that have been building for more than a decade.