Kingston Hospital is bracing itself for financial challenges ahead.

The hospital's annual report was advertised on the front of the Surrey Comet newspaper as part of the trust's efforts to reach out to residents and bolster its bid for semi-independent foundation status.

There is still a spending freeze on recruiting staff at the hospital, except in exceptional circumstances, as a result of a £1m overspend.

The annual report has chief executive Kate Grimes saying: "In this tough economic climate and with the review of hospitals taking place across south-west London, there are of course many challenges that will be faced by the hospital."

But a spokesman said the annual report was written before the General Election and despite the changing political climate, the hospital is not legally allowed to make changes.

Chairman Christopher Smallwood said Kingston was still planning to provide an A&E, emergency services and planned surgery - all services which were revealed to be under review before May's General Election.

The report looks back on the 2009-10 financial year and highlights successes, including being named 15th best district general hospital in the country, but also mentions its continued efforts to find beds for patients when they are ready to leave the hospital.

The hospital's AGM will take place at 12.30pm on September 29.

Background:

Kingston Hospital ended the financial year being dragged into a political row on the future of its A&E, maternity and services.

Politicians argued about whether it was right to go public with a Save Kingston Hospital campaign, based on the embryonic proposals of the south-west London review - of which 16 of 18 involved the loss of a major service at Kingston.

Despite high-profile visits from opposition politicians David Cameron and Nick Clegg promising to protect the hospital, NHS London pushed ahead with the review until May's general election.

The new Conservative health secretary Andrew Lansley promised to hand more control to GPs, and axe health bodies like NHS Kingston and NHS London.

The review has ended but GPs will take on the job of deciding if the changes need to take place.

The year in review:

April 2009: Two out of every 10 staff questioned in a staff survey said they had seen bullying, harassment or abuse from a colleague.

May 2009: Kingston named a top 40 hospital.

June 2009: Midwives contacted the Surrey Comet raising serious concerns about understaffing in the maternity ward. Fire brigade served an enforcement notice on the hospital after two fires.

July 2009: A Nasa scientist revisited midwives who saved her life 10 years ago.

August 2009: Hospital blamed technicalities for not being able to prove it was meeting rigorous child safety legislation.

September 2009: Councillors backed hospital's bid for foundation status giving it semi-independence within the NHS.

October 2009: Kingston slipped backwards in its annual healthcheck ratings with only a fair for quality of care.

November 2009: Police raids on a private security and cleaning company at the hospital led to arrests and questions about illegal workers.

December 2009: Hospital named best district general hospital in London.

January 2010: Threat to hospital's accident and emergency, maternity and surgery revealed.

February 2010: £80,000 spend on troubleshooters revealed after teething problems with new IT system.

March 2010: A patient planned funeral after cancer incorrectly diagnosed at Kingston.