The deal paves the way for Morgan Sindall construction to build a 125,000 sq ft of offices and 194 new homes.

The ‘Your New Town Hall’ project will also preserve the historic town hall while reducing the council’s core office buildings from 14 to 2, saving at least £4.5m a year.

Thomasin Renshaw, development director at Muse Developments, said: “We are delighted that the planning committee has resolved to grant planning permission for the ‘Your New Town Hall’ project.

“These plans will deliver a modern, energy-efficient civic office for Lambeth, and regenerate the current town hall and surrounding properties for new civic and community spaces.

“We are looking forward to making a start on site in the coming months.”

The approved redevelopment proposals, which cover the Town Hall Parade, Hambrook House and Olive Morris House along with the refurbishment of Ivor House and the Town Hall, will deliver:

The project will provide around 600 construction jobs including 35 apprenticeships and work placements.

It is hoped that work can commence later this year, following the completion of the relevant legal agreements with Lambeth Council.