In November last year, the City of London Corporation’s Court of Common Council ratified a decision to end the corporation’s interest in co-locating the wholesale food markets of Smithfield and Billingsgate to a new site at Dagenham Dock.
Instead, the corporation has agreed a deal with the traders at both markets that provides them with financial and practical support to move their businesses to new locations. Already 70% of traders at Smithfield have agreed to move together within the M25, creating a ‘New Smithfield’, while 90% of Billingsgate traders intend to relocate together to a new ‘New Billingsgate’.
The decision means the corporation will be able to move forward with proposals to redevelop the two sites. At Smithfield, plans are being developed for a new international cultural and commercial hub, adjacent to the new London Museum, while at Billingsgate, the corporation has said it will develop 4,000 homes on the site.
BE News caught up with City of London Corporation policy chairman Chris Hayward to find out more about the plans.
What is happening with the markets at Smithfield and Billingsgate and why?
Working closely with the traders at both Smithfield and Billingsgate Markets, we have reached a historic agreement that will see the City of London Corporation support the traders to find new sites for their wholesale activity within the M25. This agreement has been the outcome of a long process of consultation with the traders and other key stakeholders and reflects the strong desire among traders to relocate to modern, fit-for-purpose facilities that enable them to scale their businesses. The traders are proactively shaping the future of their businesses, receiving support to move to more suitable and sustainable facilities that address current challenges while unlocking growth opportunities. By relocating to upgraded premises around 2028/9, traders aim to better position themselves in an increasingly competitive and regulated food supply environment.
Fundamentally – and this has been clear for a long time – the existing market sites are no longer fit for purpose. Limited trading hours, inefficient logistics, and outdated infrastructure, mean they no longer meet the demands of a modern wholesale food market serving a global city. Importantly, they also constrain the ability of the traders to grow their businesses. For many reasons, it therefore makes sense for the traders to relocate to new locations within the M25.
The corporation plans to redevelop the Smithfield and Billingsgate sites. At the former, it’s important to state clearly that the Grade II* structure will remain, and our vision is for this to become a new international cultural and commercial hub, complementing the new London Museum at Smithfield next door. Together with the world-renowned Barbican Centre, these plans will ensure the Square Mile becomes a place where people live, work, learn and explore. At the Billingsgate site, the London Borough of Tower Hamlets will be able to press ahead with 4,000 much-needed homes and new commercial space at Billingsgate – contributing to London’s need to create jobs, attract visitors, improve sustainability, and support economic growth.
When will the markets close and why is parliamentary approval needed?
The City of London Corporation has a legal obligation to run the wholesale markets at their current sites – a responsibility that can only be ended by Parliament. As such, the City of London (Markets) Bill was deposited in November and is now progressing through Parliament. Market operations will continue to operate at the existing sites during the Parliamentary process and subject to the bill‘s successful passage, they will continue to do so until at least 2028. This extended period provides all parties ample time to plan and finalise the process of identifying new sites for the markets within the M25. In February 2025, a comprehensive, independent study was published that clearly demonstrates that the planned markets move from their existing sites will have a minimal effect on food supply.
The decision on the future of Smithfield and Billingsgate has not been taken lightly and has been the outcome of extensive consultation. Ultimately, traders themselves say that these markets will have a much brighter future in new, modern purpose-built facilities that can support the long-term scalability of their businesses, which will also support economic growth across London and the UK. The corporation will continue operate the fruit and vegetable market at New Spitalfields, which is in better condition and has a longer operational life than Billingsgate and Smithfield.
How are you supporting the traders to relocate to new sites?
The agreement we have reached with the traders at Smithfield and Billingsgate provides a package of financial support that will enable them to move to new locations. At Smithfield, 70% of traders have agreed to move together within the M25, creating a ‘New Smithfield’, with the remaining 30% transferring their businesses, ensuring seamless trade continuity and 100% of trade moving. Similarly, 90% of Billingsgate traders intend to relocate together to new premises, which they propose to call ‘New Billingsgate’. Ten per cent of Billingsgate traders are undecided, but should they retire will likely transfer their business to those traders who are relocating.
Both Billingsgate and Smithfield traders manage successful and profitable businesses and are therefore keen to relocate elsewhere. Alongside the financial package, the City of London Corporation is actively supporting traders in securing new premises. This includes practical support, such as brokering discussions with landowners and developers, to ensure a smooth transition,
We are 100% committed to supporting the traders find new locations for the wholesale markets within the M25, and we anticipate those sites being identified and progressed well before 2028, which, subject to parliamentary approval, is the earliest point at which the current markets will close. There will be a transition from the current market locations to new locations, and we will be working with the traders to ensure that the process is as smooth and seamless as possible.
What impact will the plans have on London’s food supply?
There will be minimal impact – and we can say that with confidence. An independent detailed food report – prepared by global data and AI consultancy Artefact – examined how the markets operate currently and the potential impact of the decision to enable the traders to move to new locations. There is a fascinating level of insightful detail in the report. It finds, for example, that both Smithfield and Billingsgate markets now function primarily as distribution and warehousing hubs rather than shop fronts, with traders increasingly handling outbound logistics from the markets through their own delivery operations. Around 80-85% of transactions at the markets are already conducted off-site via phone and digital platforms, meaning customers’ reliance on physical locations has significantly diminished.
What are your future plans for the Smithfield and Billingsgate sites?
The wholesale markets will continue at Smithfield and Billingsgate through to at least 2028, giving traders time to plan and execute a smooth transition to the new market sites, which is subject to the successful passage of the bill through Parliament. Under the corporation’s plans, the historic Grade II* listed Smithfield buildings will be sensitively restored and repurposed into an international cultural and commercial hub, complementing the neighbouring London Museum.
At Billingsgate, redevelopment of the site will deliver up to 4,000 much-needed new homes, including affordable housing, public realm improvements, and a new bridge across Aspen Way to address socio-economic disparities between Poplar and Canary Wharf. It will also create 14,500 direct jobs, supporting London’s growth. The redevelopment of both markets is projected to generate £9.1bn in cumulative GVA by 2049, attract 1.4 million visitors annually, and create 600 direct jobs, supporting the Corporation’s ‘Destination City’ mission to create jobs, attract visitors, improve sustainability, and support economic growth in the Square Mile and beyond.
What is the timeline for bringing forward the redevelopment plans?
At this stage, we have set out our vision for the two sites. Our immediate focus is on working to support the passage of City of London (Markets) Bill through Parliament, and supporting the traders in identifying new sites for the markets. Moving to new locations prior to the bill’s passage provides continuity for traders; their suppliers and customers. Traders aren’t leaving their current locations until 2028 at the earliest, and we’re helping them find new sites by arranging discussions with developers and landowners.
The financial assistance serves as a means of helping facilitate the preservation of the long-standing and generational nature of these often family businesses. Furthermore, traders have indicated they intend to maintain their business identities by operating under ‘New Smithfield’ and ‘New Billingsgate’, thereby ensuring continual international recognition.
