Town Hall to pay Elephant and Castle traders £200k compensation for closure of shopping centre

By Kit Heren

Traders who will be booted out of a shopping centre in July to make way for new housing will receive £200,000 from a town hall, after pressure from campaigners.

Southwark council agreed the additional funds to compensate traders for the closure of the Elephant and Castle shopping centre last night, as activists gathered to protest outside its offices in Tooley Street, London Bridge.

The shopping centre will close on July 30 to make way for new homes.

Property company Delancey, which is managing the redevelopment, had already earmarked £634,700 to help traders with relocation costs.

The developer and Southwark council have also promised to find new premises for traders who will be displaced.

But about half of the 130-odd traders are still to be relocated and, despite the extra funds, campaigners say that the council and Delancey have not done enough.

Jerry Flynn, a spokesman for Up the Elephant, which supports the campaign, said: “We’re very pleased that Southwark council has finally found £200,000 for the traders after three years. What we want now is more money from Delancey.

“Long-standing traders are facing the loss of their businesses and livelihoods because of the shopping centre demolition and the failure of the relocation strategy.

“The shopping centre must not be closed until all the traders are relocated or suitably compensated.”

Campaigners say that Elephant and Castle, one of the UK’s largest Latin American communities, will lose part of its character.

Emad Megahed, who runs a printing service in the shopping centre, said: “Most of us are from ethnic minorities. They tell us to integrate and they want London to be cosmopolitan but then our community is disintegrated.”

Southwark council said it would work with traders to find the best use of the new funds.

Cllr Johnson Situ, Southwark council cabinet member for growth, development and planning, said: “We know this is an anxious time for traders and the council wants to make sure it is offering whatever support it can to help them find and move into new premises in and around the Elephant and Castle area.

“Many businesses have already been offered an affordable unit nearby, but others are still worried about the future.

“The benefits of the centre’s redevelopment are clear – a much-needed new ticket hall for the Northern line, a new home for the London College of Communication and new open spaces, retail, culture and leisure facilities to bring people to the area and new homes, including 116 homes at social rents.

“We are committed to ensuring the benefits of the new development will not be at the expense of the traders who have made the centre their home.”

Delancey said: “We continue to work very closely with independent traders at the shopping centre to support businesses’ plans for relocation.

“This process is still ongoing and, as part of this, we served notice to tenants on January 15 and confirmed the last day of trade and closure of the shopping centre will be Thursday, July 30, 2020. This provides tenants with much-needed certainty to plan for the future.

“At the same time, we are making plans for the construction of temporary, flexible and affordable retail at Castle Square, and will update the community with more details on this very soon.”

Activists have been disputing the redevelopment for years. A High Court judge rejected an attempt to overturn planning permission in December. Campaigners have applied for permission to review this decision.

Top, traders protesting in Tooley Street on Tuesday night