Croydon Council has rubbished objections from businesses which could put a stop to a £1bn shopping centre development plan at the start of a public hearing that could determine the future face of the town.

Organisations including Sainsbury's, Natwest Bank and WH Smith are opposed to a compulsory purchase order (CPO) of land on North End agreed by the council last April.

If it is approved by the Secretary of State for Local Government then businesses on the land where the Westfield/ Hammerson development will be built, including the Whitgift Centre, can be bought up and demolished.

Before it gets to the Government Minister it must be recommended for approval or dismissal by planning inspector Paul Griffiths.

On the first day of the public inquiry, held at Bernard Weatherill House, barrister David Elvin outlined the case for approval.

Mr Elvin, acting jointly for the council and the Croydon Partnership of Westfield and Hammerson, was dismissive of the reasons groups have objected.

Watch a CGI video of the proposed development

One objection is that they do not think the scheme will be financially viable and, they say, is reliant on John Lewis department store.

Mr Elvin said: "You and the Secretary of State can be satisfied as to the viability of the scheme and that there is a reasonable prospect that it will be delivered.

"Croydon Limited Partnership is able to fund the scheme through internal resources . . . Its commitment is clearly demonstrated by the investment of some £200m in Croydon town centre, the promotion of the scheme, the acquisition of property interests to date and the detailed work being undertaken to prepare for delivery.

"The council, through the scrutiny of Deloitte, has satisfied itself that the scheme is viable and has reasonable prospects of delivery."

He added that a anchor store such as John Lewis was preferred, but not essential.

Landowners Bouwfonds and Minerva have put forward alternatives to the compulsory purchase order and argue that if the regeneration takes place then they should be allowed to retain their interests and become "joint venturers".

This was dismissed by Mr Elvin.

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He said: "It is noted that Minerva do not intend to appear at the inquiry.

"As a matter of principle, the imposition of a joint venture with other landowners is an obvious recipe for dispute, uncertainty and delays especially if it has not been agreed with the Whitgift Foundation and requires significant changes to the scheme.

"Evidence shows that the current complex overlay of interests in the order lands has contributed to the serious lack of investment in the town centre over the last 20 years."

A High Court battle is also underway over the plans, with group The Whitgift Trust, unconnected to the Whitgift Foundation, who also own a portion of the land in question, fighting the CPO.

The case was thrown out by the High Court last year and an appeal is due to be held next week.

The public inquiry is set to last until March 11 with the planning inspector expected to report his findings by August