By Tom Bill
LONDON, Sept 4 (Reuters) - The development of Royal DutchShell's new British headquarters in London has beenthrown into doubt after the government decided to review plansalready given the green light by local officials.
The Qatari-backed project plans to redevelop the site nextto the landmark London Eye wheel on the south bank of the RiverThames, creating a 1.45 million square foot complex comprisingthe existing 27-storey Shell Centre and eight new buildings withshops and offices and 877 homes.
Lambeth Council approved the 1 billion pound ($1.6 billion)scheme, which is being developed by Qatari Diar and Canary WharfGroup, in May. Construction was due to start at the end of thisyear, with a completion date of 2019.
The work is now on hold, however, after the governmentintervened to consider issues including the effect any newscheme would have on views of the Houses of Parliament and BigBen - a UNESCO world heritage site on the opposite side of theThames.
"Ministers are very selective about calling in planningapplications and only take this step if planning issues of morethan local importance are involved," said a spokesman for theDepartment for Communities and Local Government.
The decision was described by Lambeth council as "bitterlydisappointing" and also came under fire from London Mayor BorisJohnson.
"This project will bring hundreds of new homes and thousandsof new jobs," he said. "It's vital that this is resolved quicklyand any delay is minimised to avoid compromising theredevelopment of one of our pre-eminent cultural quarters."
A source close to the process voiced concern over possibleimpact on future investment. "Think about the bad message thissends to the Qataris and other developers," the source said.
The decision is "very unlikely" to make Shell think twiceabout its base in Britain, said another source close to thematter, and the company was sanguine in its assessment of thesituation.
"We look forward to taking part in the process and hope fora positive outcome from it so we can continue to contribute tothe regeneration of the South Bank," Shell said in a statement.
Canary Wharf Group, which is majority owned by SongbirdEstates, and Qatari Diar were not immediately availablefor comment.
