Ministers will today say the ill-fated £11.4 billion National Programme for IT, set up in 2002, is to be "urgently dismantled" following criticism that it is not value for taxpayers' money.
After an official review, the "one size fits all" project will be replaced by cheaper regional schemes allowing local health trusts and GPs to develop or buy individual computer systems to suit their needs.
The Coalition's Major Projects Authority, established to review Labour's financial commitments to gauge if they provide value for money, found the scheme was not fit to provide services to the NHS, which has to make about £20bn in savings.
It comes after a damning report from a cross-party committee of MPs concluded that the programme had proved "beyond the capacity of the Department of Health to deliver".
Digitising the medical records of the country's 62 million people was the core objective of the National Programme for IT in the NHS, accounting for £7bn of the total estimated cost.
Last month the Public Accounts Committee found that despite billions of pounds already being spent on the scheme, it was unclear what the benefits have been and so ministers should think about whether the rest of the cash could be better spent elsewhere.
Automated Summary from: The Telegraph