The Council's decision to withdraw, rather than suspending, from next year's Compulsory Purchase Order (CPO) on Beam Park, is a bitter blow to the regeneration of New Road.
Whilst the likely loss of the promised Beam Park station is responsible for the withdrawal of the CPO, it was always a risk that it would have failed due to a potential undervalue of the land the Council wished to purchase. Whether due to having to pay more for that land or to receive a lower return on built properties, it undermines if not blocks, the Council's planned Joint Venture developments.
Largely of the Council's own making
Whilst the decision not to approve the station was the Government's, the financial situation the Council's is now in is largely of their own making. Councillor Graham Williamson (South Hornchurch) says "The Council (and the GLA) gambled that the station would be approved as it would increase built property values and thus attract (private and Council alike) developers. They never however admitted this and were happy to approve planning applications knowing full well the station was not guaranteed".
Leader of the Opposition, Councillor Ray Morgan (Hacton) says "Not only is the New Road regeneration in jeopardy and a Plan B likely necessary, Council finances will take a hit both in costs and loss of planned for profits. Frankly, they only have themselves to blame and should have 'locked in' the station before approving planning applications. Havering Council’s initial lack of due diligence around the robustness of delivering a station, must not be overlooked.”
Decision details can be found here: https://democracy.havering.gov.uk/ieDecisionDetails.aspx?Id=6285