London mayor London Ken Livingstone has approved a £400m retail and housing scheme which will create more than 1,000 jobs.

Mr Livingstone has written to Greenwich Council giving his approval to the 4.37-hectare Love Lane Development in Woolwich.

The 1.5 million sq ft scheme, which is being co-ordinated by the council, developer St James Investments and Tesco, will include 960 new homes, of which 344 will be affordable.

It includes a new £45m Woolwich Civic Centre with a library, an 80,000sq ft Tesco and other shops and cafes.

In a letter to Greenwich Council head of development Steve Pallett, Mr Livingstone said: "Having now considered a report on this case, I am content to allow Greenwich Council to determine the case itself, and do not therefore wish to direct refusal."

The council's planning board agreed to give outline planning permission for Love Lane in January.

Some businesses in Wellington Street will be demolished as part of the scheme.

The civic centre part of the project was also given full planning permission.

Council leader Councillor Chris Roberts said: "The scheme represents the largest mixed development in the centre of Woolwich for generations.

"The scope is huge, as are the benefits for new and existing communities.

"Alongside the development of DLR and Crossrail to Woolwich, and investment in homes, schools and jobs, Love Lane is a crucial part of our plans to regenerate the borough which has, in many areas, suffered from decades of decline."

Tesco corporate affairs manager James Wiggam said: "We are delighted to be involved with a number of important schemes throughout the UK which are putting our beliefs in regeneration and sustainability into practice.

"Tesco has an excellent track record in encouraging regeneration and the Love Lane scheme provides a positive platform from which to demonstrate how our schemes help to create flourishing centres for business, the environment and communities."

Funeral directors Sue and Paul Hopper protested against a council decision made last August to make their business in Wellington Street subject to a compulsory purchase order to make way for the new civic centre.

They brought the town centre to a standstill as they walked through the streets, bearing a Tesco brand-style coffin.

Mr Hopper was not surprised by Mr Livingstone's decision. He said: "It was inevitable about what was going to happen. Greenwich Council is looking for alternative premises for us in Woolwich and has been extremely helpful.

"As far as we are concerned our demolition won't happen with the council offices. We are going at a later stage but we do not know when."

The demolition of businesses in Wellington Street is expected to take place in the autumn, with work on the new civic offices expected to be completed by the end of 2009.

Work on the whole scheme is expected to last seven to eight years.

  • To see a larger image of the Love Lane development click here