Southwark council approves compulsory purchase of Elephant and Castle shopping centre, paving way for demolition of site

By Grainne Cuffe, Local Democracy Reporter

Southwark council approved a compulsory purchase order (CPO) for Elephant and Castle Shopping Centre at a virtual cabinet meeting on Tuesday (April 7).

The CPO will be made on behalf of offshore developer Delancey, which plans to demolish the shopping centre to make way for a new pedestrianised town centre, 979 homes, a new college building for the University of the Arts London, leisure and office space, and a new station.

Recommendations to give £200,000 to traders who will be displaced by the billion-pound redevelopment, as well as a report overriding residents’ rights to stop the scheme over loss of light, were also approved.

The CPO will cover ‘the East Site’, including the shopping centre and its immediate surroundings on the New Kent Road, Walworth Road and some of the arches under the adjacent railway viaduct and ‘the West Site,’ comprising the LCC site and its immediate surroundings.

The shopping centre is due to shut on July 30 so the plans can go ahead.

Of the homes proposed, 116 will be for social rent, charged at around £100 a week for a one-bedroom flat, while 53 will be available for the London Living Rent at about £150 a week.

Another 161 will be available at up to 80 per cent of market prices.

The rest will be at market rent – a one-bedroom is expected to cost about £2,000 a month.

A crowdfunded campaign which challenged the decision to grant planning permission, specifically with regard to the number of homes available at social rent, lost its case at the High Court in December.

Introducing the report on extra funding, Councillor Johnson Situ, cabinet member for growth, development and planning, said revitalising the Elephant and Castle has been a “long-held ambition” for the council.

He said: “This report highlights our commitment that we announced in January about the additional support for Elephant and Castle Shopping Centre traders which is £200,000.

“When I announced it in January it was really important then, but what’s transpired since means that means it’s even more important.”

The £200,000 set aside for traders will be on top of relocation funding of £634,700 to be secured from the developer.

Stephanie Cryan, cabinet member for jobs, business and innovation, said the council will be able to distribute the money to traders after the statutory five-day call-in period is over.

Cllr Cryan said: “We’ve all had a lot of emails and tweets this week around the situation with the traders in the centre, and I just wanted to reconfirm our absolute commitment to helping support the traders through this period.”

“This CPO won’t diminish our commitment to them at all,” she added.

Cllr Richard Livingstone, cabinet member for environment, transport and the climate emergency, asked what conversations were being had to help Arch traders which could be displaced.

“Obviously if the CPO powers are used for other landowners in the area, which is Network Rail or Arch Co, it potentially has a knock-on impact on their tenants,” he said.

Cllr Situ said that conversations have “by no means come to a conclusion,” but were “positive”.

Pictured top: A previous protest to save the shopping centre