Bexley to form development body after Gateway snub

The London borough of Bexley intends to set up its own development body after it was unexpectedly excluded from a flagship organisation responsible for helping housing growth in the Thames Gateway.

Bexley, in south-east London, was left outside the boundaries of the London Thames Gateway Development Corporation, which were confirmed by the ODPM last Thursday. Lorraine Baldry, chair of the Central London Partnership, will chair the new corporation.

Neighbouring borough Greenwich was also left out of the corporation.

The government's decision onthe boundaries was a surprise because it had indicated that it wanted the development corporation to straddle the Thames. It will now cover land only on the north of the river.

Bexley now intends to set up an urban regeneration company to push forward its plans for housing. Greenwich may also seek to set up a formal vehicle with developers.

According to the Thames Gateway London Partnership's investment framework, there is a need for 18,800 homes within Bexley and Greenwich councils' areas.

Chris Ball, leader of Bexley council, said: "We want a special delivery vehicle for Bexley.

"Within the development corporation, there would have been a risk we'd have been a small player. Now, we can put Bexley at the centre."

The proposal is expected to be finalised before the summer break, with the body up and working before the end of the year.

He said Bexley's body would be modelled on Kent's Medway Renaissance Partnership. It will be led by the local authority but will include other public sector and commercial interests.

Greenwich council leader Chris Roberts said the borough had not decided how it will move forward. "We already have great interest from the private sector without a special vehicle. We'll have one if we need one."

However, sources say the corporation's boundaries jeopardise the proposed regeneration of the Thames Gateway.

One source said: "It's disappointing. There is a real danger that these areas won't receive the funding they need."

There is also concern that the boundary has been drawn too tightly on the north bank. Malcolm Smith, director of environment and regeneration at Newham council, said: "We could repeat the error of the London Docklands Development Corporation in leaving out communities that won't get access to money."