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Battle waged over Dome housing

Mayor Ken accuses Prescott of undermining his London Plan strategy to build affordable homes

Mayor Ken Livingstone has claimed the government’s deal for the Millennium Dome threatens his London Plan.

This week, he went head to head with Deputy Prime Minister John Prescott over the future of the Greenwich Peninsula.

Livingstone’s insistence that half of the homes on the peninsula should be affordable threatens to scupper the government’s original deal for the redevelopment of the Millennium Dome and surrounding land.

The mayor told Greenwich council last Friday that he was minded to direct refusal of plans to redevelop the 190 acre site unless 50% of the 10,000 homes planned were affordable.

The plans by Meridian Delta, submitted last week, make provision for 35%, which one insider said was “already pushing the envelope of viability”.

Livingstone has accused the government of “undermining” his London Plan, as well as the Communities Plan and the government’s own commitment to regenerate the Thames Gateway, by allowing developers to provide less than 50% affordable housing on major government-owned sites.

The government and Meridian Delta, the consortium made up of Lend Lease and Quintain, are expected to stand their ground to stop the deal from collapsing.

Meridian Delta, which has the backing of the government, the London Development Agency and Greenwich council, will appeal against any refusal of its application.

The planning application includes up to 10,010 homes, 3.7m sq ft of offices, 646,000 sq ft of shops, hotels and leisure facilities, alongside the redevelopment of the 1.4m sq ft dome and a new leisure area.

Greenwich was expected to approve the application on Wednesday and Livingstone is expected to overrule the decision. But the government is subsequently expected to overturn the mayor’s decision.

Livingstone blamed the lower provision on financial restrictions caused by the government’s demanding £550m over 25 years in exchange for the site.

“The financial restrictions are artificially prescribed by the deal between the Office of the Deputy Prime Minister and Meridian Delta, and ODPM’s insistence on the level of return,” he said.

“These prescriptions will create a dangerous precedent for affordable housing provision in the Thames Gateway.

“If it can’t be done on publicly owned land, how can we expect private developers to do it on other big sites in the Thames Gateway?” he asked.

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