A legal challenge preventing the transfer of community services to a social enterprise has been dropped.

NHS Hull said it had been advised that a claim for judicial review, entered against the primary care trust’s decision to transfer its provider arm to a community interest company, had been withdrawn.

Change of any sort inevitably brings uncertainty and the past few months have been understandably difficult for us, but even more so for our staff, who for some time have been left unsure about what will happen to them

As a result, the PCT will now continue with its plans to transfer its provider arm to City Health Care Partnership social enterprise scheme.

Around 1,200 employees will transfer to the scheme, leaving around 300 staff at the commissioning arm.

The target date for complete separation is 1 June 2010. Employees will receive formal notice of transfer by the end of the month.

NHS Hull chief executive Christopher Long said: “Change of any sort inevitably brings uncertainty and the past few months have been understandably difficult for us, but even more so for our staff, who for some time have been left unsure about what will happen to them.”

NHS Hull has been acting as a social enterprise “pathfinder” for the Department for Health since 2006.