Victorian Greenwich market faces being turned into a ‘Bluewater’ site

The scheme has split the community with local MP, Nick Raynsford, and some traders in favour of the proposal but other councillors, businesses and residents against it.

The existing market, including its roof and Victorian cobbled floor, would be removed with the 20 small shops which flank it. In its place would be a smaller modern market, with a plastic or membrane roof and "pushchair-friendly" paving, surrounded by contemporary shops and a 104-bedroom hotel.

Martin Sands, director of Greenwich Hospital, the charity which owns the site, said the scheme would "regenerate" the town and "retain the character of the market" with independent traders, rather than chains, favoured as the new shops.

But Spencer Drury, leader of the opposition on Greenwich council, described the plan as "aesthetic vandalism" of a major tourist attraction which was "not in keeping" with the historic town, one of four Unesco World Heritage sites in London.

"Ripping out the cobbles seems to me to be completely wrong," he said. "The materials of the new buildings do not seem in keeping with the image of Greenwich. I am concerned we will end up with a town centre that is a giant building site." Greenwich is facing five separate redevelopment or improvement schemes in the run-up to the Olympics. Some of Greenwich Park will be closed for 10 months to host the 2012 equestrian events.

None of the buildings to be demolished, which date from the 19th century to the Fifties, are listed, although the market roof is locally listed. Mr Raynsford said the roof was "clapped out" and the new development would be a "real enhancement". He dismissed concerns about the removal of heritage buildings and cobbles as "nitpicking".

But Paul Trynka, a resident who is campaigning against the proposals, said: "We are stripping out the richness and texture and replacing it with something like Bluewater. Every person I've spoken to is outraged."

If the plans are approved, a temporary smaller market will be set up in the grounds of the Royal Naval College to tide stallholders over during the two-year construction period.

Traders in the market, in College Approach, spoken to by the Standard said they were concerned. "It's a bit sterile," said Stephen Chong, of Greenlands health food store. "I can see that some refurbishment is necessary, but not at the expense of changing the whole feeling and ambience of the market."

A spokesman for Greenwich Hospital said the plans had been "extensively consulted on", with regular newsletters to residents. He said three-quarters of visitors to a consultation exhibition staged by the developers had expressed support for the scheme.

The plans must now be approved by Greenwich council and Mayor Boris Johnson. Campaigners for the market hope Mr Johnson's decision last week to save the popular Queen's Market in Newham could set a precedent for Greenwich.