Nearly £1bn worth of investment into Wandsworth has been jeopardised by a decision to review plans for twin towers on the site of the historic Ram Brewery, the council’s leader has warned.

Councillor Edward Lister said Communities Secretary Hazel Blears’ decision to call in the plan was “unbelievable”.

But Battersea MP Martin Linton, who wrote to Ms Blears asking her to look at the decision, said the proposal was a struggle for the “heart and soul” of Wandsworth.

Last December the council approved developer Minerva’s £300m plan to revamp the historic site - which includes creating two towers, one 42 storeys the other 32.

Mayor of London, Boris Johnson, also signed off the project, but Ms Blears wrote to the council last week expressing concern “the proposals may conflict with national policies on important matters”, including the towers’ height and affordable housing (which accounts for 11 per cent of the development).

Coun Lister said the decision could have a knock-on effect for further projects planned for the borough, totalling £600m.

He said: “It’s unbelievable that in the depths of a recession a Minister would put at risk £1bn of investment in the town centre. The [Ram] development would have been the catalyst for the wider regeneration of Wandsworth town centre.”

But Mr Linton responded: “This is a real battle for the heart and soul of Wandsworth.

"Do we want to be another Croydon with huge tower-blocks overlooking the town centre or do we want to keep the High Street on a human scale, and do we think the priority in this new development should be luxury housing or affordable housing for local people?”

Tony Belton, Labour leader in the council, added: “Far from being the catalyst for the wider regeneration of Wandsworth town centre as claimed by Coun Lister, it would have blighted the borough for years.”

The application will now be considered at a public inquiry, which could take months. Ms Blears will make the final decision.

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