More than £192million of debt is to be wiped out for the NHS trust which administers hospitals in Felixstowe and Ipswich, among others.

The debt write off is part of a £750m package for the East of England to provide a major financial reset for NHS providers.

East Suffolk and North Essex NHS Foundation Trust, which looks after hospitals in Colchester, Ipswich, Clacton, Halstead, Harwich, Felixstowe and Aldeburgh, will be rid of more than £192 million of debt.

The biggest beneficiary will be Mid Essex Hospitals Services NHS Trust, which will be rid of more than £195 million worth of historic debt, freeing it up to invest in maintaining vital services and longer-term infrastructure improvements.

Altogether 12 NHS Trusts in the East of England will be rid of historic debt, as part of a package of major reforms to the NHS financial system.

The government says that the changes will provide much needed financial support during the unprecedented viral pandemic, as well as laying secure foundations for the longer-term commitments set out last year to support the NHS to become more financially sustainable.

Health Secretary Matt Hancock said: "As we tackle this crisis, nobody in our health service should be distracted by their hospital's past finances.

"Today I'm pleased to confirm the value of this package for the East of England. This £1.7 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services."

NHS chief executive, Sir Simon Stevens, said: "We've advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position – not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan."

Felixstowe hospital, in Constable Road, does not take in patients, with all Covid-19 victims, taken to Ipswich, or Colchester hospitals, which are also part of the Trust.