Some of the cash which was due to fund doomed plans to create a gyratory system in west Greenwich has been reallocated to Woolwich town centre, according to mayor Boris Johnson.

London Assembly member Darren Johnson asked the mayor about the scheme’s funding, as it appeared delays to the project would mean Greenwich Council losing a grant from Transport for London to fund the scheme, which was due to create a pedestrianised area at College Approach and King William Walk. The Green Party member posed the question before the scheme was shelved last week.

In a written response, the mayor said the council had planned to use part of two years of funding under TfL’s Local Investment Plan – money distributed to boroughs every year for their own schemes.

With the current financial year about to run out, it had been agreed that the money could be used to fund reconstruction of General Gordon Square in Woolwich, instead.

The full answer reads:

The London Borough of Greenwich proposed to use 2010/11 and 2011/12 Local Implementation Plan (LIP) funding from TfL for the design and implementation of its Greenwich Town Centre (GTC) improvement scheme. Greenwich is currently working with TfL and other stakeholders, which include local residents, to develop a scheme that is acceptable to all parties. Whilst these discussions continue, it has been agreed between Greenwich and TfL to reallocate the 2010/11 GTC LIP funding to the Woolwich Town Centre public realm improvements – this ensures the funding is not lost and enables Woolwich Town Centre to be completed ahead of schedule.

So, at first sight, it looks as if the money may not be lost after all. The gyratory scheme was shelved after TfL objected to it because of “significant concerns about its impact on bus passengers and operations”.