London mayor Sir Sadiq Khan has launched a public consultation on his wish to seize control of Oxford Street.
Sir Sadiq is proposing to establish a “mayoral development corporation” to drive the transformation of the nation’s most famous shopping street by taking it out of the control of Westminster council.
He also appears to want to gain power over a smaller number of streets at the eastern end of Oxford Street that are currently the responsibility of Camden council.
This could eventually lead to Oxford Street being part-pedestrianised, though any traffic changes would need Government approval and to be considered in a separate consultation process.
As such, the nine-week consultation on establishing a mayoral development corporation is effectively just the start of a process that could take several years – if not more – to complete.
Respondents will also be asked for their views on the principle of removing vehicles from Oxford Street.
The council, despite being under Labour leadership, continues to believe that a mayoral development corporation is “not necessary” to deliver change , but says it will “work pragmatically” with the mayor.
It says it has secured City Hall’s agreement that buses will continue to run on the eastern section of the street, between Oxford Circus and Tottenham Court Road, as diverting them north or south of Oxford Street would be near impossible.
However the consultation documents say the mayor believes there is a “compelling case for the phased pedestrianisation” of Oxford Street and that “most of the traffic” would be removed.
“This would begin with the area between Oxford Circus and Orchard Street, as part of a wider programme to deliver a world-class public space and would include public realm improvements to areas of the street which would take longer to pedestrianise, such as the section of the street east of Oxford Circus,” they state.
“This transformation would remove most of the traffic on Oxford Street and, in turn, improve air quality and reduce road danger.”
Sir Sadiq announced last September that he had received the backing of Deputy Prime Minister Angela Rayner to reignite plans to part-pedestrianise the western end of Oxford Street, between Oxford Circus and Selfridges.
The eastern end of the street, between Oxford Circus and Tottenham Court Road, will not be pedestrianised - at least in the short term - but will receive “radical improvement” under an agreement with the council.
Sir Sadiq believes the “case for pedestrianisation” has strengthened since his failed attempt in 2017-18 due to the opening of the Elizabeth line stations at Tottenham Court Road and Bond Street, both of which provide step-free access to Oxford Street.
It has since emerged that he would expect businesses and not London taxpayers to pay the bulk of the cost of any road changes, estimated at £150m.
Asked how the project would be funded, a mayoral spokesman told The Standard on Friday: “We are exploring several ways of funding the project including funding from private businesses, developer contributions, and philanthropy, and new revenue streams such as advertising and events.”
The consultation documents also suggest that a businesses in the area will be charged a Crossrail-style levy to fund the changes - and that the mayor may have to borrow funds.
They state: “There will be revenue from application fees including planning applications, contributions from section 106 agreements and Community Infrastructure Levy receipts may be expected.
“The mayor is committed to ensuring that revenue generated by development within the MDA, or through other public sector funding opportunities, is used to support delivery of the physical and social infrastructure requirements of the Oxford Street area.
“This may require spending by the MDC in locations outside of the MDA in cooperation with relevant authorities.
“The mayor may need to borrow funds for capital investment to support infrastructure delivery.”
The consultation documents state in relation to the MDC’s proposed powers: “Once established, the MDC can discharge various statutory functions relating to infrastructure, regeneration, land, requiring the adoption of private streets, business and financial support.”
Sir Sadiq aims for Oxford Street to be redesignated as a Transport for London road, though this would require parliamentary approval.
Sir Sadiq believes that the Oxford Street area has suffered in recent years due to the pandemic, the growth of online shopping and of out-of-town shopping centres.
He says the creation of a mayoral development corporation could lead to “future plans to pedestrianise Oxford Street” and transform it into an exciting, green and thriving destination for Londoners and tourists alike.
The public consultation – which is open from February 28 to May 2 - is about gathering Londoners’ views on the mayor’s proposals to create a mayoral development corporation, which would have powers to support the transformation of the area, and on the principle of pedestrianisation.
However the “footprint” of the development corporation’s area would be limited to “one block on either side of the street” under a bargain struck by the council.
Sir Sadiq said: “Oxford Street has been known as the nation’s high street but the area has suffered in recent years.
“My proposals are designed to unlock the true potential of Oxford Street and deliver a world-class, accessible, clean, avenue. These proposals would help to restore this famous part of the capital and support good businesses, while creating new jobs and boosting growth.
“I encourage everyone to have their say on these proposals, which would transform Oxford Street into a place Londoners and the whole of the country can be proud of.”
According to the GLA website’s Oxford Street section: “All proposals including those to pedestrianise the street will be subject to consultation and engagement with residents and businesses, with different options explored and tested before full implementation.”
According to research by the London Assembly, the establishment of a mayoral development corporation would not provide the mayor with the powers required to close Oxford Street to traffic and pedestrianise the road.
This could only be done by a highway authority – which, at present, is Westminster council.
Sir Sadiq has indicated he wants TfL to become the highway authority – though that has yet to be formally agreed, The Standard understands.
In the event that Westminster council does not consent to Oxford Street becoming a TfL road, the mayor would require the support of the Government.
What Londoners think about pedestrianising Oxford Street... pic.twitter.com/L6Sik4Ae0U
— Ross Lydall (@RossLydall) February 27, 2025
Last year Sir Sadiq said that cyclists would be banned from any pedestrianised section of Oxford Street.
The mayor is establishing an “Oxford Street office”, with around 15 staff. He is currently advertising for a communications & stakeholder officer, offering an annual salary of £63,112.
Sir Sadiq has been asked by members of the London Assembly to explain how his Oxford Street transformation team will be funded.
He has also been asked whether he would be willing to consider introducing a tram on the street as part of the pedestrianisation plans – an idea which dates to 2004, when it was suggested by Ken Livingstone in his time as mayor.
Mr Livingstone did not advocate full pedestrianisation of Oxford Street and said in 2006 that to pedestrianise Oxford Street would be a “disaster”.
Sir Sadiq has the power under the Localism Act 2011 to designate areas in Greater London as mayoral development areas.
There are already two, covering the former Olympic park and the Old Oak Common and Park Royal area.
The London Assembly has the power to veto the mayor’s decision to designate by a two thirds majority.
MDCs are “functional bodies” of the Greater London Authority. The mayor is able to exercise significant powers over MDCs, including appointing the chair and board, and giving a general power of direction.
The mayor may decide whether MDCs become the planning authority for the area they cover.
MDCs are able to acquire land in the area. According to the Localism Act, the primary aim of any MDC is the regeneration of an area - leading to some critics to suggest they are the wrong way to pedestrianise Oxford Street, which is more of a transport scheme.
At least one elected representative of each local authority that falls within the boundaries of the new MDC area will sit on the board, together with local businesses. Westminster says it has been guaranteed at least three seats.
The City Hall press release included a supportive statement from the Labour leader of Camden council – but nothing from Westminster council leader Adam Hug.
In a separate response, the council described the mayor’s move as a “step forward”.
Mr Hug said: said: “Subject to the outcome of the mayor’s consultation, our role is to ensure that the mayor's proposed Oxford Street transformation delivers for local communities, as well as for London.
“We have already fought hard to secure numerous improvements from the mayor of London to ensure that any plans for Oxford Street are deliverable and meet the needs of local residents, businesses, and wider London.
“We seek to work pragmatically with the mayor's team to ensure a bright future for the nation’s high street as well as for our residential communities and businesses.”
Camden leader Richard Olszewski said: "The London-wide and national economic benefits of such a scheme are there to be seen for residents and visitors alike, as are wider benefits for air quality and health and wellbeing.
“This is a significant development for central London and a new use of powers. We look forward to engaging with the mayor and other stakeholders on the consultation and continuing to work with them on developing the proposals, including to benefit neighbouring areas like Fitzrovia and Holborn.”
Caroline Russell, a Green Party member of the London Assembly, said: “To make Oxford Street safer and cleaner, pedestrianisation is the best way forward. I’ve been asking the mayor to do this for years, so I’m pleased to see a public consultation finally taking place.
“Oxford Street should be a flagship location for Londoners, not a place where buses are stuck idling in traffic."
