Southwark Council's Cabinet has approved the acquisition of premises for a new health centre in Elephant and Castle, a move intended to replace two existing GP surgeries that are both in old buildings in a poor state of repair and urgently need to move to improved premises.
The decision, made at a meeting on Monday, March 16, 2026, will see the council acquire the shell and core of the building using Strategic Community Infrastructure Levy (CIL) funds. This will facilitate the delivery of a state-of-the-art health facility.
The new health centre is expected to offer a broader range of health services beyond current GP provision, aligning with the NHS South East London ICB's strategic plan for the borough. These expanded services are intended to provide a step change in local primary and community care capacity, facilitating integrated, multidisciplinary care in a regeneration area experiencing sustained population growth. The centre will offer:
- Relocated and expanded GP services from higher quality estate.
- Treatment and minor procedure rooms.
- Phlebotomy and diagnostic space (e.g. ECG/ultrasound subject to confirmation).
- Shared reception, waiting and back-office functions.
- Community nursing and therapy services.
- Mental health and counselling rooms.
- Women's health and long-term condition clinics.
- Flexible outpatient / specialist outreach clinics delivered by local Trust partners.
- Group consultation and education space.
- Integrated Neighbourhood Team (INT) hub working, enabling co-location of GPs, community health, mental health, social care and voluntary sector partners as part of the borough's INT model.
This initiative also aims to reduce avoidable A&E attendance, unplanned hospital admissions, and demand on adult social care.
Negotiations for the detailed terms of the acquisition and the subsequent fit-out costs will be subject to full business cases. The council intends to use Strategic CIL to fund the fit-out.
Authority has been delegated to the Cabinet Member for Equalities, Democracy and Finance, in consultation with the Strategic Director of Resources and the Director of Planning and Growth, to oversee these negotiations. The Director of Planning and Growth will also be responsible for finalising terms with the relevant NHS body for an under-lease of the premises at a market rent from the council.
The acquisition is part of the wider Heygate regeneration programme, with the health centre premises forming the final plot to be brought forward. Hub, the developer, acquired the long leasehold interest in the site in December 2024 and submitted a new residential-led planning application which includes the health centre. This application (25/AP/2859) is expected to be determined at committee in March 2026.
The council's involvement is seen as crucial, as the developer requires a legal commitment to lease the space upon completion, which the NHS is unable to provide in the same way. By acquiring the shell and core, the council gains an asset that can provide a long-term income stream from the NHS, while also ensuring the facility meets the required standards. The council has a strong working relationship with the NHS, having previously delivered the Harold Moody Health Centre and identified sites for future health centres.
Subject to planning consent, Hub is targeting practical completion by Q2 2030, with the fitting out to NHS standards estimated to take a further 12-18 months, leading to an opening between 2031 and 2032. The acquisition is considered a potentially profitable long-term investment for the council.
However, the meeting information outlines several identified risks for the transaction:
- Risk 1: The council cannot agree terms with the developer. Mitigation: The council [have agreed the heads of terms for the acquisition].
- Risk 2: The H1 site does not achieve planning. Mitigation: The proposals would fall away.
- Risk 3: The premises are not delivered to the specification required. Mitigation: The developer would be in breach and the council would be under no obligation to complete the transaction.
- Risk 4: The NHS become unable to take a lease of the premises. Mitigation: The council is taking the shell and core which provides flexibility of user and has identified a number of potential alternative uses if the NHS cannot take a lease.
Further details on the acquisition can be found in the Report Elephant and Castle Health Centre Acquisition [https://moderngov.southwark.gov.uk/documents/s132110/Report%20Elephant%20and%20Castle%20Health%20Centre%20Acquisition.pdf].