Blears gets tough over Ken's towers

The Communities Secretary has referred the £200million scheme to a public inquiry.

The Doon Street development, between Waterloo Bridge and the Oxo Tower, would include the 472ft apartment block - almost 30ft higher than the London Eye - as well as a leisure centre and dance studio.

Ms Blears's move follows concern about the tower's potential impact on important views from St James's Park and the courtyard of Somerset House as well as on the listed National Theatre and Royal Festival Hall.

English Heritage, which has complained about the "adverse impact" of the tower, welcomed the decision today. A spokesman said: "A public inquiry is the proper forum to debate all the issues."

Ms Blears is also worried the scheme, which is backed by Lambeth council as well as Mr Livingstone, does not offer affordable housing.

The developer is Coin Street Community Builders, which has been behind much of the recent redevelopment of the South Bank, including the Oxo Tower, and funded by the Mayor's London Development Agency.

It proposes that the tower contains 329 one- or two-bedroom flats, priced between £320,000 and £575,000.

But the minister is concerned that even though Mr Livingstone has insisted all major new housing developments should set aside half of their units for key or low-paid workers, none of the Doon Street flats would be "affordable".

Paul McGlone, Lambeth's cabinet member for regeneration, said: "An exception to the council's normal requirement to provide affordable housing was considered justified as the scheme would provide a leisure centre, including a swimming pool, for local community use."

Iain Tuckett, executive director of CSCB, said: "We need the profit from the private flats to pay for the leisure centre, which is a requirement of Lambeth council. We are confident that we will be able to persuade Ms Blears that this is a well-thought out scheme and it should be approved."

Housing is a major problem in Lam-beth - since 2003 only 1,451 affordable homes have been built in borough, almost one third short of the target of 2,140 units.

The council is having to use police cells as emergency overnight accommodation for homeless families.

Jeremy Clyne, Lambeth's Lib-Dem opposition housing spokesman, said: "I hope Ms Blears will agree that almost all of these flats are likely to be bought by investors as City crash-pads when the borough desperately needs affordable, family-sized homes."

The Mayor said: "The mix of housing has been fully justified by an independent financial appraisal which recognises that the inclusion of affordable housing ... would preclude the development of the new facilities. This approach is fully in line with the Mayor's London Plan."

In 1984, when he led the Greater London Council, Mr Livingstone paid £2.7 million for the Doon Street site and then passed it on to CSCB for just £1 million so that it could be developed as social housing.