Surrey County Cricket Club's (SCCC) plans for the £35m redevelopment of the Brit Oval venue in Kennington, south London, have been approved by the government following a public inquiry.

The scheme had been given the go ahead by the London Borough of Lambeth in January 2008, but was called in after the Health and Safety Executive expressed concern over the close proximity to a nearby gasholder. Plans include the construction of a new stand – to replace the existing Lock, Laker and Peter May South stands – which has been designed by Populous and will increase the Brit Oval's capacity to 25,000.

The development will be carried out in partnership with Arora International Hotels, which is set to open a new 168-bedroom, four-star property at the venue as part of the project, while a new public piazza will be created on the site of the Surrey Tavern. Paul Sheldon, SCCC chief executive, said: "This decision has been a long time coming, and we are very pleased with the outcome. The development is an important one both for cricket and our community.

"The continued improvement of facilities at the Brit Oval means that international cricket is guaranteed a place here for many years to come, and the Arora International hotel will be a major contributor to some much needed regeneration for our local area."