Pressure is building on the government to speed up its review of NHS competitive tendering after a private company won a pounds1m contract to provide non-emergency patient transport services to the Royal Hospitals trust in London.

This threatens 34 jobs at London Ambulance Service trust, which expects to stand down 20 vehicles. 'It is an anomaly within the collaborative NHS that this contract has gone to the private sector,' said LAS finance director Helen Chalmers.

LAS is considering legal action to ensure that transfer of undertakings (TUPE) regulations apply to protect employees' wages and conditions.

Michael Byrne, managing director of M&L Cars, the successful bidder, said he was seeking legal advice on whether TUPE would apply.

Unison national officer Maggie Dunn said taking the service outside the NHS meant it would not be integrated with accident and emergency services.