Council officers and councillors have fought for years to stop an unwanted block of flats being built in Station Road.
Planning permission has been denied on a number of occasions but the national Planning Inspectorate overturned the council's latest refusal.
The council subsequently explored if there was a way to challenge the Inspector's decision but a top barrister has advised any further challenge in the courts is nigh-on certain to fail at significant cost to Croydon taxpayers. The council has therefore unwillingly had to call a halt.
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Describing the Planning Inspectorate's ruling as "an affront to local decision-making", Councillor Mike Fisher, the leader of Croydon Council, added: "This has effectively ridden roughshod over the wishes of the community in South Norwood and those of Croydon Council's planning committee.
"I have said it before but I will say it again. There needs to be a re-balancing of the country's planning system so that these judgements can be made solely by local people. I am sick and tired of planning decisions that are entirely local in their impact being made by some so-called national planning expert parachuted in from Bristol.
"As a council we will now be submitting a representation to the Government to ask that these comments are reflected in the national planning policy framework due to be finalised in the Autumn. We want more decisions able to be taken locally without outside interference.
"In the meantime, I can only add my personal opposition to the decision of the Inspectorate and express my sympathy to the people who have fought this for so long."
(CD)
