A £57.4 million private finance initiative to rebuild nine London fire stations including Dockhead and Old Kent Road will go ahead - more than four years after it was first proposed.
As well as the two SE1 fire stations, Dagenham, Orpington, Plaistow, Purley Shadwell , Leytonstone and Mitcham will also get new facilities.
"This is a good day for the local fire service, for Bermondsey, and for the safety of our local communities," says Simon Hughes MP.
"I was consulted over the plans for both these fire stations, went and discussed them on site with the fire officers from each station, and supported both of them enthusiastically.
"At last the threat that has for years been hanging over Dockhead Fire Station has been lifted.
"It is great that our local firefighters will now have the best facilities to provide their invaluable service to our communities. I am also glad that this week's decision will also mean improved training facilities and more opportunities for local people to visit to learn about fire safety."
Southwark councillors voted to grant planning permission for the development in spring 2009.
It had been thought that the scheme might be cancelled as part of the widespread cuts but the Government has decided to give the go-ahead for the project.