Hospitals have been blocked from setting up their own "PPE factories" by the government - despite the desperate need to protect frontline staff, it is claimed.
A furious MP has branded it "criminal" after his local NHS trust was told it could not cut a deal to make thousands of surgical gowns to use in their hospitals - or accept safety gear made by inmates at a nearby prison.
A trust insider described it as "scandalous", saying staff are in desperate need of PPE, and hospital chiefs wanted to "just get on and sort it" rather than wait for lifesaving equipment to be distributed by the government.
Labour MP Ian Lavery, who represents Wansbeck in Northumberland, accused health authorities of "bullying" leaders at Northumbria Healthcare NHS Foundation Trust, who had been "innovative" to protect their workers.
The trust, which runs 11 hospitals, had teamed up with car firm Wingrove Motor Company to transform a warehouse into a "PPE factory" which can produce up to 7,500 protective gowns for frontline teams across the region.
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Insiders claim they were threatened with legal action if they accepted the PPE gear - an allegation NHS England emphatically denies.
Mr Lavery said local healthcare bosses were "devastated" at the obstruction they have faced, fuming: "They're putting pressure on the trust not to protect their own staff.
"This is dynamite. We've got an innovative trust who are looking to use their own initiative to make their own PPE that they require and they're just facing obstruction."
And the former party chairman continued: "It's criminal. It's just unbelievable - you'd think they'd welcome it.
"I spoke to someone at the trust who's pretty senior and they're absolutely devastated at the bullying that's happening."
The Department for Health says all offers to supply PPE has to be managed centrally, so the gear can be quality checked and distributed across the UK.
This means trusts are not allowed to make their own deals with local suppliers to address dangerous shortages.
Mr Lavery claimed health authorities have also told the trust not to accept PPE from nearby HMP Northumberland, where prisoners are making gear to help medics through the crisis.
"They're telling them they can't accept this," he said.
"I've got no idea what the reason is, but I can clearly say it puts staff in danger."
Mr Lavery said if the trust was able to produce more PPE than it needed for itself, it would be able to supply it to other areas.
Mirror Online has contacted the Department for Health and NHS England for comment.
On Thursday Northumbria Healthcare admitted they were experiencing "some difficulties", but issued a revised statement the following day.
Sir James Mackey, CEO from Northumbria Healthcare said: "Over the past four weeks, we have had a fantastic response from local businesses, partners and volunteers, who have supported us to develop a supply chain to help meet the needs of NHS organisations in our region, and beyond.
“We’re working with national partners to access available supplies for staff in our area and over the longer term, this local production innovation will help provide local employment and support the recovery of the North East economy, post Covid-19.”
The Department for Health, while unable to provide specifics about the issue in Northumberland, said: "Our PPE strategy sets out how we can deliver more PPE, including crucially how British manufacturers can step forward and scale up manufacturing.
"All suppliers should make contact through DHSC’s official portal. They will receive an immediate response acknowledging their offer."
It said all offers to produce PPE must go through this portal, and all safety equipment has to be checked so it is of a good enough quality.
The department said HSE, Public Health England, DHSC and NHS England are working together on distribution, with Local Resilience Forums prioritising areas based on clinical need.
