The chief executive of the NHS and permanent secretary at the Department of Health, Nigel Crisp, is to step down at the end of this month after acknowledging accountability for the health service's financial problems.

Sir Nigel said his decision to enter early retirement at the age of 54 was taken with “sadness.”

Despite overseeing huge increases in spending and waiting list reductions he admitted in a frank statement that “not everything had gone well.”

“I am particularly saddened by the difficulties we have had over the last few months and the financial problems we are …