A £3million project to redevelop Clapham centre has stalled after local people complained it would lead to congestion and pollution.

The Clapham Gateway development scheme, which has received ring fenced funding from Transport for London (TfL), will link the Old Town with the New Town, providing better pedestrian and cycling routes.

But although building work started on Venn Street last month, the next phase of the development has been delayed by six months because of local opposition, potentially costing Lambeth Council £20,000. Council officers have reportedly spent more than £250,000 on fees since the project began. They are now re-consulting their planning designs with TfL.

Members of local pressure group, Save Clapham Common, are campaigning against the relocation of a bus stand from the Old Town to The Pavement. The group argues the new terminus will be an “eyesore” on the common, cutting off the Old Town with a bus wall and creating a ‘bottleneck’ of traffic.

More than 2,000 people have already signed the group’s petition against the new bus stand.

A spokesperson for the group said they supported the development as a whole, but wanted certain aspects changed.

They said: “We are keen to see local investment and improvements, especially in the current economic climate with scarce financial resources, provided there are community-wide benefits that work.” The development falls within Vauxhall MP Kate Hoey’s constituency.

She is supporting the group’s campaign. She said: “I am pretty confident the scheme will eventually go ahead but there has got to be some give and take on it.”

But Howard Taylor, owner of Venn Street Records and the Grafton House pub in Clapham, insists the project is needlessly being put on hold.

He said he found it “incredible” that Kate Hoey MP was opposing parts of the regeneration scheme.

He said: “[The development] will definitely change the perception of Clapham and it will bring in quality investment.

“It would be a great shame to delay as it is a chance to transform Clapham.

“I find it incredible that an MP, in their own constituency, would want to oppose it.”

Tony Margiotta, a personal trainer who lives on Clapham Common southside, said he could not understand the opposition.

He said: “I remember this place 11 or 12 years ago and it was very rough. It is fabulous now but people are still complaining about it.”

Lambeth Council cabinet member for regeneration, Coun Nigel Haselden, said: "We are extremely proud of this redevelopment and the improvements will bring a major transformation to the town and make it a more attractive place for residents and visitors. It is unfair to describe the Clapham Gateway project as coming to a ‘standstill’ – Venn Street has been a roaring success and the redevelopment work is on course for completion by autumn.

"We have worked hard with the business community and local residents to ensure the design at Venn Street has brought the vitality of a weekend street market to the local retail area."

A further stakeholders meeting will take place in September.