Work to build a new multi-million pound fire station in Mitcham will start in September.

The London Fire Brigade (LFB) officially signed a £51m private finance initiative (PFI) with contractors Blue3 this week to build nine new fire stations across London with Mitcham set to be one of the first to get underway.

The PFI, which will ultimately be paid for by the taxpayer, will see eight stations in Dagenham, Dockhead, Leytonstone, Old Kent Road, Orpington, Plaistow, Purley and Shadwell completely rebuilt.

Mitcham will be built on a completely new site on London Road.

But the LFB's move to sign up to a multi million pound PFI project at a time when other stations are being closed has been criticised by the London Fire Brigade's Union (LFBU).

Ian Lehair, London Fire Brigade Union's executive council member for the London region, said: "PFI's have been proven to be very expensive in the long term.

"We are going to be getting nine new fire stations but at what cost later on?

"It's going to put us in extreme difficulty and it doesn't give us any stability going forward.

"We would question why they have decided to go ahead with these PFIs after closing 10 fire stations.

"According to the Mayor (Boris Johnson) we haven't got the money yet we can still find money to go out and get involved with PFI projects which we know in the long term will cost us more money."

The LFB defended their decision insisting the upgrade is necessary to keep the stations in service - some of which are more than 100 years old.

Dominic Ellis, London Fire Brigade’s assistant commissioner for technical and service support, said: "This rebuilding programme will bring some of our oldest stations up to date and provide us with brand new facilities fit for the 21st century.

"The community spaces that these stations will provide also reinforce our commitment to providing fire safety education and advice to Londoners - something that we believe has played a key role in the fall in fires and deaths and injuries from fire over the last 10 years."

Operations will continue at the current fire station opposite the Cricket Green in Mitcham until the new building is completed which is expected to be in the autumn of 2014.