Plans for two new Croydon health centres to be paused over ‘financial climate’

By Tara O’Connor, Local Democracy Reporter

Plans for new health centres in Coulsdon and New Addington have been paused, with the NHS blaming the “current financial climate”.

Croydon was awarded £9.7m by NHS England in 2020 to support the two new centres, which were originally due to be completed by March 2024.

Last month the developer revealed all projects were being paused to review the impact of rising interest rates and market rents.

An update is expected to be heard at a meeting next week.

A Croydon NHS report said: “The developer confirmed that they were pausing all upcoming current projects to review the impact of rising interest rates, market rents and other external factors, including the costs of building supplies affecting their financial viability and those of their investors.”

The Coulsdon site was originally supposed to be developed with the council and its wholly owned developer Brick by Brick, but this became “unviable” when the council’s financial situation worsened. This forced the NHS to appoint a new developer for the Lion Green Road centre.

In New Addington, the plan is to move services from the Parkway GP surgery to a new building in Central Parade, which is set to include screening and diagnostic services.

The report added: “Whilst both projects are currently paused, the local NHS remains in discussion with NHS England and the South West London Integrated Care Board to secure the extension required, which is vital to the future of the development.

“Discussions are also continuing with the developer in anticipation that a resolution can be found. An updated response from the developer is expected before the end of the year.”

The latest is due to be discussed by the council’s health and social care sub-committee today.

Pictured top: Croydon town centre (Picture: Tara O’Connor)