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M&S Mounts Legal Challenge Over Rejected Oxford Street Plans

Retailer Believes Government ‘Wrongly Applied’ Planning Policy
The M&S store at London's Marble Arch. (CoStar)
The M&S store at London's Marble Arch. (CoStar)
CoStar News
August 31, 2023 | 1:10 P.M.

High street retailer Marks and Spencer has launched a legal challenge against the government's decision to reject its plans to demolish and rebuild its store at 458 Oxford Street in London, suggesting the government "wrongly applied" planning policy.

Earlier this summer, the Levelling Up, Housing and Communities Secretary of State, Michael Gove, poured cold water on the retailer's ambitions to knock down its flagship 1929 Art Deco store and replace it with a 10-storey retail and office block, in a decision the retailer branded "utterly pathetic".

Among the reasons listed by Gove to reject the plans were a consideration for new policy to prioritise retrofit and refurbishment of buildings where appropriate, and the substantial amount of carbon the construction of the new structure would emit.

M&S operations director Sacha Berendji has confirmed that the brand will now take the government to court over its decision, with the group hoping to reverse the "misguided agenda" against its scheme. He said in a statement: "Today we have launched a legal challenge against the government’s decision to reject our Marble Arch store proposal.

"We have done this because we believe the Secretary of State wrongly interpreted and applied planning policy, to justify his rejection of our scheme on grounds of heritage and environmental concerns.

"It is hugely disappointing that after two years of support and approvals at every stage, we have been forced to take legal action to overcome a misguided agenda against our scheme, and we will be challenging this to the fullest extent possible."

The Marks & Spencer Marble Arch site is at the junction of Oxford Street and Orchard Street, close to Selfridges, and the company has operated there since 1930. Its Pilbrow & Partners designed scheme proposed lower ground and ground plus nine storeys, including plant equipment, and basement levels that include accommodation for leisure facilities. It would have added four storeys to the existing height.

As part of the plans, the upper floors of the new building would be used as headquarters with a single tenant occupying a whole floor or floors, or subdivided and occupied by multiple tenants.

The case is being followed closely by developers and landlords, with it becoming a key test of changing parameters for demolition and new build, as opposed to refurbishing existing buildings.

Alistair Watson, UK head of planning and environment at law firm Taylor Wessing said many in the property industry had been expecting the challenge from M&S, with the retailer within its rights to appeal the decision.

He said: "M&S and the real estate industry have relayed their views, and a lot of the real estate industry considers that the government got this wrong.

"The government chose to overlook the worth of evidence from recognised experts, including M&S's leading sustainability experts, the very significant benefits of development and investment, and an inspector's positive recommendation.

"Its planning decision has serious implications for everyone and it can be viewed as being illogical and unreasonable. On that basis, the decision needs and deserves to be challenged."

The Department for Levelling Up, Housing & Communities called in the plans in June last year for review by an independent planning inspector at public inquiry, with Gove then having the final say. The scheme was approved by Westminster council in November 2021.

The DLUHC was approached for comment.

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