A massive redevelopment for New Addington has been halted by a glorified dog toilet, according to council leader Mike Fisher.

Retail giant Tesco had planned to build a store in the area, which would have brought with it 250 new homes, a new swimming pool, new library, community halls, neighbourhood police base and medical facilities But the project has been sunk by a “mischievous” action which has resulted in the scruffs of green outside Central Parade shops given village green status, under a 19th Century law.

An infuriated Coun Fisher said: “This outcome has nothing to do with a group of people genuinely seeking to protect the legitimate use of an amenity as a traditional village green. Rather it’s a case of exploiting legislation to block a lawful development that would have brought all kinds of benefits to people living in one of the most deprived wards in the country.

“I could understand the legitimacy of a challenge if the space had been a well-established focal point for recreational pastimes. But for the technical argument to be won on the basis of the space - being used as little more than a dog toilet really - shows that the Act is in need of urgent review.”

Croydon Council has vowed to keep regeneration of New Addington a top priority and is hopeful Tesco will maintain its interest.

Chief executive Jon Rouse said he would be planning talks with the supermarket chain about future options.

He added: “Understandably members are going to be disappointed at the inspector’s findings and will no doubt express their own views on the matter after the forthcoming by-election.

“If the inspector’s recommendation is accepted it will mean that the £80 million regeneration scheme, led by Tesco, cannot proceed in its present form because it would involve building on land that has now been identified for protection.”

Local Labour councillors put the blame not on those responsible for the application but the Tory administration.

Coun George Ayres said: "It should never have come to this. The Tories have squandered the opportunities for jobs and houses for the people of New Addington."

Coun Carole Bonner added: "The Tories have proved by their actions elsewhere in the Borough that they have no desire to invest in facilities for local people."

And Coun Simon Hall said: "This follows hot on the heels of the proposed closure of Addington High which was only prevented by the marvellous response we received from everybody here."

The report Vivian Chapman QC has submitted to the council essentially recommends that village green status be given to the green space to the west of Central Parade.

The recommendation will be considered by the council’s corporate services committee early in March and if accepted, the area will be designated by the council formally as a village green.

This will mean the council must review its landholding in Central Parade and develop a new master plan for the area - within the constraints now confirmed by the inspector’s conclusion.