Lambeth Council is considering the compulsory purchase of land owned by Tesco as it grows frustrated at the supermarket giant's failure to move the Streatham Hub development forward, it has emerged.

A source close to the project has told the Streatham Guardian that after months of Tesco "stalling" the project, council officers are now looking at a " plan B" to see new leisure facilities, promised as part of the project, built as quickly as possible.

A state-of-the art leisure centre, swimming pool and ice rink have been promised alongside a Tesco supermarket, 250 new homes and a major car park.

But Tesco ha s delayed the project in recent months, stating it is "under review". The council believe this to be because of a collapse in the housing market when the residential development was intended to pay for the project.

Our source said the council officers and administration have become concerned at the deteriorating state of the current leisure centre and the ice rink, and fears they could be forced to close mean the council is desperate to push on with the project.

As a result it is considering seeking a compulsory purchase order of the bus garage site - currently owned by Tesco - where the lesiure facilities will go, so it can build them itself.

However a compulsory purchase order could take years to go through, the source said, and building the facilities by itself could cost the council much more than the £20m ceiling figure it has committed to the project.

It is also feared the move could cause Tesco to pull out of the project entirely, which could put the ice rink at risk of closing before the new one opens.

Currently under the terms of the agreement with Tesco, the supermarket giant must run the ice rink and keep it open until until the new one is built beca use of its importance as a facility to Streatham and the rest of south London.

A Lambeth Council spokesperson said: "This regeneration scheme promises to bring much needed leisure benefits to the area and we remain 100 per cent committed to ensuring that this happens.

"We regularly review contingency plans for the Streatham Hub as part of our ongoing risk management processes - this is standard practice.

"We are frustrated that things are not happening more quickly but remain committed to working with Tesco and continue negotiations with them to move this project forward."

Tesco chose not to comment but a spokesman said it has always maintained its commitment to the project.