At a public inquiry, campaigners argued the redevelopment could push up rents and force out residents
Controversial plans to build offices, homes and a data centre near Brick Lane in east London have been approved by the government, despite opposition from the local council and campaigners.
The proposals, put forward by property owners Truman Estates and Zeloof LLP, would see three sites in and around Brick Lane redeveloped into offices at the Truman Brewery, a cinema, supermarket, market and 44 homes, of which six would be for social rent.
Critics said the plans would deliver too little affordable housing and risk eroding Brick Lane's cultural character.
The government concluded the development's economic and regeneration benefits outweighed the identified harms.
The scheme also includes additional office space at Ely's Yard and a data centre in Grey Eagle Street, west of Brick Lane.
Campaigners at a public planning inquiry said the redevelopment could accelerate rising rents which could "displace" Spitalfields residents and Brick Lane's curry houses.
The main Truman Brewery site is part of the development plans
Labour minister Matthew Pennycook approved the scheme this week on behalf of Housing Secretary Angela Rayner.
In the published decision, external, Pennycook said Rayner "acknowledges the housing needs of the local community, and the strongly held local views on the proposals".
He added: "The secretary of state notes that a significant Bangladeshi population lives and works in and around Spitalfields and Banglatown.
"She has taken into account community concerns around the potential impact of the proposals on this specific community."
However, he said Rayner had seen "no detailed evidence" that an alternative, housing-led development was feasible, according to the Local Democracy Reporting Service (LDRS).
Pennycook's decision said the six homes for social rent had been "specifically designed to meet local housing needs and accommodate larger Bangladeshi heritage families".
But Tower Hamlets Mayor Lutfur Rahman, of the borough's ruling Aspire Party, said Tower Hamlets was facing an "acute housing crisis, with over 30,000 households on the waiting list and thousands of families living in overcrowded conditions".
"Against that backdrop, development of this scale delivering only six homes for social rent falls significantly short of addressing local need," he added.
He described the decision as "a missed opportunity to deliver the social and affordable housing that Tower Hamlets residents urgently need".
The decision also referenced an increase in footfall which would boost businesses on Brick Lane.
Pennycook added that the "public benefits of the data centre", which is intended to provide faster internet connections for financial traders in the nearby City of London, "would be very significant indeed".
But Rahman said the data centre would "do nothing to contribute to the activity, vitality and character of this historic and treasured part of London".
The decision was taken out of the council's hands after developer Truman Estates appealed to the Planning Inspectorate in June 2025, arguing the authority had missed deadlines to determine planning applications sent in August 2024.
The council's draft Local Plan, which guides development across the borough, earmarks the site for a housing-led scheme with 800 homes. However, Pennycook said the plan should be given only "limited weight" as it has yet to be examined by the Planning Inspectorate.
Save Brick Lane and Truman Estates have been contacted for comment.
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