Redbridge has missed out on becoming the new home for three historic London markets.

The City of London Corporation today announced Barking Reach in Dagenham will be the new home for New Spitalfields, Smithfield and Billingsgate wholesale food markets, subject to public consultation.

The decision was made in a meeting at Guildhall today. Those making the decision felt the Barking Reach site offered good potential to support their wider vision.

Redbridge Council had hoped to provide a new home for the markets at a 162-acre site in Fairlop.

If successful the bid could have brought in £500,000 in business rates per year for the authority and more than 3,500 jobs could have been created in the borough, with 200 new small and medium businesses coming to the area.

The bid was supported by Ilford North MP Wes Streeting, GLA member for Redbridge and Havering Keith Prince and Redbridge Council leader Cllr Jas Athwal.

Later this summer, the City Corporation will launch a public consultation on the consolidation of the markets and preferred Barking Reach site.

Parliamentary legislation will be required to approve any relocation.

Catherine McGuinness, policy chairman at the City of London Corporation, said: “The City’s three world-leading wholesale food markets at Billingsgate, New Spitalfields and Smithfield have been serving our citizens for hundreds of years, and we are committed to their future for London.

“In order to secure their continued success, and after careful consideration of a number of options, Barking Reach has today been agreed as the preferred site for consolidating the City Corporation’s wholesale markets. We intend to use this new site to offer more modern facilities and space for traders to grow so that they can continue to support the capital’s food economy.

“We will soon be launching a public consultation on our preferred option. As part of this process, we will continue to engage with market tenants, traders and their customers, and other key stakeholders across London.

“Our number one priority is to maintain a top-quality market environment serving London.”

Cllr Athwal said: “Although we are disappointed by this news after putting forward an ambitious and detailed plan, we are pleased the future of these iconic markets is secure.

“Our neighbouring borough Barking and Dagenham will serve as a fantastic new home for the markets and I look forward to visiting them there.

“The relocation presents a unique opportunity for our part of the capital and we will continue to work with the Corporation of London so that where possible local Redbridge people and businesses benefit from the investment this project brings to East London.

“Whilst we have been unsuccessful this time, noone should be in any doubt about the ambition of Redbridge and our unwavering commitment to attract major investment.

“I’d like to thank everyone who was involved in developing our proposals including the residents who attended the drop-in sessions and whose feedback was invaluable in helping us shape a strong, credible proposal.

“Today, we pass on our congratulations to Barking and Dagenham and continue our collective efforts to deliver a better future for all our residents.”