The City of London Corporation has agreed to stop running the historic Billingsgate Market in Poplar and pay compensation to traders.

The corporation still needs to submit a Private Bill to Parliament to officially withdraw from running Billingsgate and Smithfields Markets but it has rubber stamped its plans to shut down the famous sites, so the bill is expected to be a formality.

Private Bills are presented to Parliament in January. The City of London has said it is "actively supporting" traders to find new sites, and that they will continue to operate at Smithfield and Billingsgate until at least 2028. 

The decision means the corporation will no longer be involved in wholesale meat or fish markets.

The corporation had originally looked to relocate both markets plus New Spitalfields in Leyton to a new facility in Dagenham.

The announcement in 2022 promised an investment of almost £1 billion by the corporation into the move, delivering 2,700 new jobs in Barking and Dagenham and around £14.5bn to the UK economy by 2049.

The Local Democracy Reporting Service (LDRS) however revealed that this particular plan, known as Option 10b, had been paused due to ballooning costs. 

Billingsgate is the country’s biggest inland fish marketBillingsgate is the country’s biggest inland fish market (Image: Ruby Gregory LDRS) The LDRS further reported over the weekend how members were being recommended to approve the corporation withdrawing from the historic sites.

While the majority of a Court of Common Council meeting on November 26 and its accompanying report on the markets co-location programme were not open to the public, the LDRS has been told the recommendation was approved.

The corporation has also since put out its own press release confirming the decision.

The chair of policy and resources and de-facto political head of the corporation, Deputy Chris Hayward, said the approval represents a "positive new chapter" for the markets and that traders will receive support to move to new locations.

“The City of London Corporation has a strong relationship with Barking and Dagenham Council and a shared interest in the future of the Dagenham Docks site.

"We will now continue to work with the borough to bring forward uses which deliver regeneration and high-quality jobs for local people.”

The corporation has already spent £308 million purchasing and remediating the site in Dagenham. 

The LDRS understands the sum to be paid to the traders exceeds £300m, which still falls far below the projected spend if the relocation was to proceed.

The money is taken from the City’s endowment fund, built up over centuries and known as the City’s Cash, rather than taxpayer money.

Billingsgate is the country’s biggest inland fish market and is earmarked to deliver thousands of homes.

The City must now deposit its Private Bill with Parliament to withdraw from the sites and close them as markets.

Approval will be required by Parliament before the decision can be finalised.