Richard Granger, director general of the £12bn National Programme for NHS IT is to step down later this year.

Granger has led the controversial scheme, which includes a plan for nationally available electronic patient records, since October 2002. He is expected to return to work in the private sector from 2008.

'My decision should be seen in the context of the changing role of the centre of the NHS and the fact that when I took on this challenge I said I would give this job five years,' said Granger.

'There remain a number of challenges ahead, but I firmly believe that the leadership of the programme by Lord Hunt, David Nicholson and my colleagues will ensure these hurdles are overcome,' he said.