Swimming pools face closure in run-up to Olympics

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Lambeth had struck deals with private developers in the hope that new pools could be built in Clapham and Streatham without needing taxpayer funding.

But the property price collapse has delayed both schemes, meaning two out of the borough's three indoor pools could be shut for two years prior to 2012.

Tesco — which vowed to build a pool, ice rink and homes in return for permission to build a store — halted the Streatham proposals in February and is in discussions with Lambeth over a rethink.

The leisure centre containing the Streatham pool was originally due to close last year.

Work on the Clapham pool, part of a £75 million development by Cathedral Group, was meant to have started last January. Clapham leisure centre is now set to close next month. With Clapham and Streatham pools, the remaining indoor one would be at Brixton Recreation Centre. There is also the outdoor Brockwell Lido.

Tory councillor Clare Whelan said: "I can't believe that by now people aren't swimming in a new pool in Clapham and Streatham."

Tesco spokesman James Wiggam said it was in discussions with the council but no date had been set to re-tender the construction work.

Mr Wiggam said: "I wouldn't say we have gone back to the drawing board, but with any major project — and Streatham is no different — we have to keep it under review.

"The housing market is different from what it used to be. To make sure the development is viable, we must make sure we have a scheme we can deliver and both ourselves and the council are happy with."

Lambeth said the Clapham plans took an "important step forward" this week when they were shortlisted for national "kick-start" funding to ease the problems caused by the credit crunch. A spokesman said: "We envisage work starting on site in early 2010, with completion in summer 2011."