Mayor of London Boris Johnson has given the go-ahead for Barratt Homes East London’s development in Tower Hamlets on the site of St Andrew’s Hospital.

The 27-storey development includes 964 new homes plus food and drink retail outlets, with provision for health care, education and cultural uses on site.

It also includes a significant provision of affordable housing and one hectare of public open space with a park, public garden, public square and smaller parks. The open spaces will have play areas, sports facilities, landscaping and public art.

The planning application was passed at the Mayor's regular strategic planning meeting and he says ‘underpins his commitment to do all he can to help London’s economy and Londoners in the current economic climate and through the challenges that lie ahead’.

The decision follows the recent launch of the Mayor’s housing strategy, which will see the Mayor working closely with the Homes and Communities Agency (HCA), investing nearly £2bn every year from the London housing budget to deliver new homes and improve existing homes.

Johnson said: ‘My team and I are fully focused on ensuring that the capital is fully prepared for the challenges ahead and that we minimise the impact of the economic downturn and I am determined to use my powers to support the development sector in particular.

'This new development will bring with it jobs, affordable homes, healthcare and education services to Tower Hamlets.

'We must not be downbeat and cannot halt construction in the capital - we need to continue to spend wisely and support these developments, as continued investment will sustain jobs so we are ready to compete in the global market when the upturn arrives.’

Barratt will develop the scheme in a joint venture with the London Development Agency.

It is not known yet if funding for the scheme has been secured yet.