The second-largest specialist cancer hospital of its kind in the world could be built after a new multi-million pound company was created between Sutton Council and the Institute of Cancer Research (ICR).

Liberal Democrat and Conservative councillors agreed to set up the council-owned company with the ICR to secure land at a strategy and resources committee meeting on Monday, February 20.

The company will take a loan to buy the land and although the amount has not been disclosed it is expected to be in the tens of millions.

Read more: 'Show more ambition': Sutton to review tram extension funding as Mayor calls on council to pledge more money

Read more: Sutton Council set to approve plans for the London Cancer Hub

Both parties would also share the £1.26m or £880,000 in liabilities after three or five years, respectively. A worst case scenario where land values did not increase put exit liabilities at £2.5m or £3.1m over the same period.

According to the report titled ‘Acquisition of Land for the Proposed Cancer Hub’ report the facility will provide employment growth in the borough, boost businesses and will be a cornerstone of regeneration.

It adds more than 13,000 jobs, of which 6,200 will be involved with the construction of the facility and 7,000 will be in the research, healthcare, administration and leisure industries and through it the ICR could develop at least two extra cancer drugs every five years.

The creation of the hub was given the green light by the council at the housing, economy and business committee meeting in September, last year.

Proposals set out in the report were accepted by councillors, however, issues about the development and monetary oversight were raised by the Conservative opposition.

Belmont Councillor David Hicks, said: “There are a few issues. We support this project, we think it would prove to be an asset to the health industry and will generate additional tax revenue for the council.

“The only issue we have is the people who had a lot of discussions about what’s going to happen and how it’s going to impact the residents of Belmont rather than anybody else in the borough.

“We are at a point where we need to talk about what benefits the residents of Belmont are going to get, rather than vague discussions.”

Beddington Councillor and deputy leader of the opposition, Neil Garratt added: “My question is about the mechanism and how that money is going to be spent.

“I think we’d be much happier if there was some kind of oversight of exactly what products it’s going to be spent on and what the planning of those will be, to make sure the money is spent well.”

Ruth Dombey, the leader of Sutton Council, agreed to look into both raised points before the motion was passed.