FUNDING for a new £10m train station will not be granted by the government despite the area “crying out to improve”.

Surrey Canal Road station, which would be used by up to 1.3m passengers a year, was due to be built as part of the East London Line extension’s second phase.

But Department for Transport Minister Theresa Villiers has announced the government will not provide the £7m needed to go ahead with the build due to “funding constraints”.

She added: “In making this decision I was also concerned the scheme would not provide good value for money for the taxpayer.”

In January Lewisham Council agreed to provide the extra £3m for the station but this was provided the government money was received.

Deputy Mayor of Lewisham and cabinet member for regeneration, Councillor Alan Smith, said: “A station at Surrey Canal Road will make a vital contribution to regenerating the north of the borough.

“For these reasons we will endeavour to find a way around this major let down, as we believe this station would provide a vital boost to investment in the New Cross area, which is much needed for residents, businesses and Millwall fans.”

The New Cross station, close to Millwall’s football ground, has long been campaigned for by residents who organised a 471-signature online petition to get it built.

Member of Millwall FC Supporters Committee, George Lampey, said: “It’s not just the football club which will benefit but the whole area.

“This is an inner city area which is deprived. There are people who would like to develop it so it seems disappointing that it’s not going to get the chance.”

Mr Lampey, who also runs the Lion’s live radio show, added: “Without the station it really affects the whole regeneration.

“You only have to look around the area to see it’s crying out to improve.”

Labour MP for Lewisham Deptford Joan Ruddock also supports the new station.

She said: “I am extremely disappointed by this outcome, the business case for the station is robust and I am sorry Department officials and the Minister have taken a different view.”

Ms Ruddock added: “It is not a matter of, ‘if’ but ‘when’ the station will be built and I will continue to work with Lewisham Council, Transport for London and local developers to put forward the case.”