A multi-million pound development for Putney Hospital has been shelved, plunging the future of the site into chaos.

Plans for the dilapidated hospital, which is situated on Putney Common and has stood vacant for more than a decade, have been mothballed as NHS budgets look likely to be frozen.

The original plan involved three local GP practices, Balmuir Gardens Surgery, Putneymead Medical Centre and Disraeli Road, being fused into an all-purpose polyclinic on the southern half of the site.

It also included provisions for a cafe, a pharmacy and facilities for health visitors, district nurses, chiropodists and other clinics.

According to NHS Wandsworth the recession has caused the value of residential property in London to drop and this has made the availability of NHS investment across London uncertain.

A spokesman said: “While we had been optimistic about this project, this difficult, but necessary decision follows an in-depth analysis of the current financial climate, changes to the way NHS services are delivered across the capital and our own proposals to increase and improve services throughout the borough.

“NHS Wandsworth and Wandsworth Council agree there is still a real need to find accommodation for the two GP practices, and revisiting our plans does not alter this priority.”

Edward Lister, leader of Wandsworth Council, said: “We want to see if NHS Wandsworth can do this with less space, but we need to see something.

"We have to allow these doctors a centre to operate from. They [NHS Wandsworth] said they would come back after the summer with some answers, but we can’t have this site empty for another 11 years.

“We will put on as much pressure as we can. It must cost a huge sum to secure the site. It is dead money.”

In 2006 when the council gave planning approval the annual costs of securing the site were estimated at £300,000.

Councillor Ian Hart, chairman of the council’s health and scrutiny committee, said NHS Wandsworth and the council were looking at viable options.

He said: “We are looking at ways to reduce the cost of the scheme.

"But there is still a wonderful opportunity to create a centre that can serve the entire community, one that would be consistent with the borough-wide strategy of focusing on providing services from easily accessible locations.

“I think it is almost certain the site will be used for some sort of healthcare facility albeit on a smaller scale.”

Mr Hart ruled out the site being used solely for residential purposes, despite the previous prototype containing plans to build further housing at the northern end of the site. A final decision will be made after NHS Wandsworth’s September board meeting.

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