Sadiq Khan's £90m Oxford Street revamp scrapped as council tries to recoup cash

Westminster City Council has confirmed a £90m regeneration of Oxford Street in central London is no longer going ahead as it seeks to claw back funds it has already spent

Westminster City Council has confirmed a £90m regeneration of Oxford Street is no longer going ahead as it seeks to claw back funds it has already spent.

The council said it is finalising the 'residual costs' of its flagship programme, a cabinet report shows. The Local Democracy Reporting Service (LDRS) understands the local authority has already spent £20m on the project so far. It also understands the council is trying to recover costs from City Hall, but the London authority has not said it will contribute any cash.

A spokesperson for the Mayor said: "We continue to work with Westminster City Council towards our shared vision for Oxford Street." Westminster City Council has been contacted for further comment. In September, Westminster City Council Leader, Councillor Adam Hug, wrote to Sadiq Khan and the Deputy Prime Minister, Angela Rayner, voicing concerns over the Mayor's plan to pedestrianise Oxford Street.

The Mayor's plan, which was announced on September 17, seeks to designate the world-famous shopping destination as a Mayoral Development Area (MDA), grabbing planning powers normally reserved for Westminster City Council. The Mayor wants to create a Mayoral Development Corporation (MDC) that would have its own planning powers and be able to overrule Westminster council. There are MDCs already in place in Old Oak Common and the former Olympic Park.

At the time, Cllr Hug wrote on X: "I have written to the Deputy PM and Mayor on behalf of my administration, setting out our 10 key concerns following the recent announcement on Oxford Street pedestrianisation. We believe they must be properly addressed before any final decisions are taken."

City Hall said the street was in need of 'major regeneration' in the face of competition from online retailers and out-of-town shopping centres, the closure of flagship department stores, and the prevalence of 'candy stores'. It said these had put 'significant strain on Oxford Street's attractiveness', while tourism numbers have not fully recovered since the pandemic.

A statement by Westminster City's Chief Executive said the council only found out about the plans a few days before their release to the public. The council had planned to spend £90m on upgrading Oxford Street, with half being paid for by Oxford Street landowners.

According to the council's website, the scheme was 'ready to go' and had strong backing from businesses and local residents. It included plans to widen footpaths, improve seating, and add more trees, other planting, lighting and clearer signage.

The council said its contractors were already on site changing traffic flows around Oxford Street in preparation for the main works that were due to start in the spring and conclude by summer 2027. Opposition leader, Cllr Paul Swaddle said: "The shutting of the Oxford Street Program is another example of how Labour-run Westminster are not ready to fight the Mayor on this scheme that is not wanted locally."