Cambridge University Hospitals Foundation Trust is no longer in breach of its licence after improving its financial and clinical performance, Monitor has announced.

The foundation trust watchdog placed the trust in breach of its licence in November 2012 following patient safety concerns, poor financial performance and repeated failures to meet national targets, including waiting times for cancer treatment and in accident and emergency.

The regulator said the trust has improved its performance following the creation of a new clinical leadership structure and the recruitment of a new chief executive, chief nurse and finance director.

The trust is now meeting cancer and referral to treatment waiting times targets, and delivered its financial plan for 2013-14, the watchdog said.

It still needs to address its performance against the A&E waiting time target but the regulator accepted that this “remains a challenge nationally”.

Monitor regional director Adam Cayley said: “The key now is to ensure this progress is maintained, so, patients are able to access services that are organised, run smoothly, and well-led.

Cambridge University Hospitals chair Jane Ramsey, said being deemed in breach of expected standards had been “a wake-up call for this great institution”.

She added: “Today’s announcement will be reassuring to our patients. It is also testament to the hard work of our staff and I would like to thank them for their on going dedication in the way they provide care here at CUH.”

“It has been tough, but we have now made the required progress. Our board was strengthened and our processes and structures changed to improve our governance, transparency and accountability. We have also invested heavily in our relationships with partners locally, regionally and nationally. I am confident that our actions have led to a stronger trust.

Chief executive Keith McNeil said: “A&E remains a challenge with unprecedented levels of demand on our service increasing year-on-year.

“Despite this pressure, we are seeing more patients within four hours than ever before, and continue to strive to further improve our performance in this area.

“Our reputation is built on the performance of all our staff, right across the Trust, and I would like to add my thanks for the work and effort they put in every day.”