MD3445 Transfer of funding to TfL in relation to the Oxford Street Transformation programme

1.1.    Earlier in 2025, the Mayor consulted on his proposal to designate a Mayoral Development Area (MDA), and establish a Mayoral Development Corporation (MDC), to drive the regeneration of Oxford Street. The consultation also asked the public’s view on the principle of pedestrianising Oxford Street. In relation to the Mayor’s proposal to designate an MDA for Oxford Street, 69 per cent of submitted responses were supportive. In relation to the principle of pedestrianising Oxford Street, 66 per cent of submitted responses were supportive. 

1.2.    In July 2025, the Mayor considered the consultation responses and decided:

•    to progress with the establishment of an MDC to lead the regeneration of Oxford Street
•    to proceed with the development of detailed proposals for the pedestrianisation of Oxford Street, that will be subject to consultation.

1.3.    This decision was approved under Mayoral Decision (MD) 3394, with public consultation planned for later in the year. The statutory instrument to create the Oxford Street Mayoral Development Corporation was made on 3 November and laid before Parliament on 5 November. The Oxford Street Development Corporation (Establishment) Order 2025 comes into force on 1 January 2026 when the Oxford Street Development Corporation is expected to be established, subject to parliamentary process.

1.4.    To facilitate the transformation of Oxford Street and the regeneration of the MDA, in September 2025 the Mayor approved the designation of Oxford Street (from Marble Arch to the western arm of its junction with Tottenham Court Road) as a GLA Road (under MD3429). The Mayor also approved that short stretches of certain side roads off Oxford Street become either GLA Side Roads or GLA Roads. The details are set out in MD3429 at Appendices A and B1; a list of the side roads and their proposed designation is at Appendix B2.

1.5.    As a result of this decision, Transport for London (TfL) became the highway authority, in accordance with section 1(2A) of the Highways Act 1980, for the GLA Roads; and traffic authority for the GLA Roads and the GLA Side Roads, with powers to make changes to traffic movements, bus routes and kerbside activities (loading, bus stops, etc). As highway authority, TfL is now responsible for the maintenance of Oxford Street.

1.6.    Following these decisions, this MD seeks approval to transfer £6.29m from GLA Group reserves for the remainder of this financial year to TfL to cover activities supporting: 

•    the acceleration of the Oxford Street Transformation programme, including preparatory and transport/highways design work for any pedestrianisation of Oxford Street – if, following consideration of the responses to the public consultation on proposed traffic changes later this year, a decision is made to proceed 
•    road maintenance and improvement costs for Oxford Street and additional side streets, following their redesignation as GLA roads and side roads in September 2025 (under Mayoral Decision 3429) which are now part of the TfL Road Network (TLRN).

 
1.7.    These costs will be incurred in 2025-26. This funding is needed within this financial year because the speed of delivery of this project has been faster than predicted at the beginning of the financial year. It should be noted that all preparatory and design work is being progressed at risk – given that no decision will be taken on pedestrianisation until the consultation outcome has been considered. Future maintenance arrangements and costs will be agreed going forward, in discussion between the Oxford Street MDC, once established, and TfL.
 

2.1.    The Mayor’s vision for Oxford Street is to:

•    maximise its economic and social potential as a globally renowned retail and leisure destination
•    deliver the greatest possible benefits for businesses and other stakeholders in the area, for London and for the wider UK economy.

2.2.    Achieving this vision would depend upon the successful regeneration of the area, including: 

•    the development of an attractive and inclusive neighbourhood that welcomes people of all ages and backgrounds
•    the provision of a high-quality, sustainable and climate-resilient public realm
•    the curation of the retail and leisure offer, including activation of the street as a visitor destination. 

2.3.    To progress this vision, and considering TfL’s role as the highway authority for Oxford Street, this funding will help achieve the following outcomes:

•    enable the continued maintenance and operation of Oxford Street to the highest standard
•    subject to consultation and subsequent decision, inform the design and implementation of any future traffic changes needed to enable the pedestrianisation of Oxford Street West, including with regards to safety-enhancing measures (e.g., hostile vehicle mitigation). 
 

3.1.    Under section 149 of the Equality Act 2010 (the Equality Act) the GLA (including the Mayor), as a public authority, must comply with the Public Sector Equality Duty when exercising its functions. This is a duty to have due regard to the need to eliminate discrimination, harassment and victimisation, and any conduct that is prohibited by or under the Equality Act; and to advance equality of opportunity, and foster good relations, between people who share a protected characteristic and those who do not. This involves: 

•    having due regard to the need to remove or minimise any disadvantage suffered by those who share a relevant protected characteristic that is connected to that characteristic
•    taking steps to meet the different needs of such people
•    encouraging them to participate in public life or in any other activity where their participation is disproportionately low.

3.2.    The protected characteristics under section 149 of the Equality Act are: age, disability, gender reassignment, pregnancy and maternity, marital or civil partnership status, race, religion or belief, sex, and sexual orientation. Compliance with the duty may involve ensuring people with a protected characteristic are provided with all the opportunities that those without the characteristic would have. 

3.3.    The Mayor’s Equality, Diversity and Inclusion (EDI) Strategy sets out how the Mayor works to create a fairer, more equal, integrated city, where all people feel welcome and able to fulfil their potential. EDI is subsequently enshrined within the GLA’s strategies, programmes and activities.

3.4.    The consultation carried out pursuant to MD3327 specifically sought views on any impacts of the proposals on people with protected characteristics. The consultation materials included two Equality Impact Assessments (EqIAs): one relating to the proposed MDC, and another on the principle of pedestrianisation. The full EqIAs are available online at: TfL/Mayor of London, Have your say: Oxford Street transformation.

3.5.    The EqIA on the principle of pedestrianisation found that the pedestrianisation of Oxford Street would create more dedicated pedestrian space along the street; and should significantly reduce the overwhelming and disorienting nature of crowding that commonly occurs. By removing most traffic from Oxford Street, it would significantly reduce road-danger risks for pedestrians. 

3.6.    The EqIA on the principle of pedestrianisation also found that any pedestrianisation scheme would reduce bus access on Oxford Street, as well as taxi and private hire access. As such, any detailed proposals should consider alternative access points on adjacent streets. Equally, if proposals to pedestrianise Oxford Street do not allow cyclists to travel through pedestrianised sections of the road, alternative cycling routes should be considered in any future detailed plans. 

3.7.    The activities described in this MD would seek to create an attractive, safe and inclusive street that welcomes people of all ages and backgrounds. TfL has appointed accessibility consultants to assess the potential impacts of the proposed changes to the local area, and the transport network in and around Oxford Street, on people with protected characteristics. This will inform the EqIA on the proposals for pedestrianisation which will be included in the consultation materials relating to the proposed pedestrianisation and any design work guiding the future changes on Oxford Street. 
 

Key risks and issues 

4.1.    The key risks and issues are set out in the following table, noting that the future scope of improvement works is subject to consultation and a subsequent Mayoral decision: 

Links to Mayoral strategies and priorities

4.2.    The proposed expenditure is expected to deliver against multiple objectives included in: 

•    the London Plan
•    the Mayor’s Economic Development Strategy
•    the Culture Strategy for London
•    the 24-hour London vision
•    the Healthy Streets agenda. 

4.3.    The London Plan 2021 identifies two international centres in the Central Activities Zone; Oxford Street sits in one of these (the West End).

4.4.    The work outlined in this MD will contribute towards the following Mayoral policies and priorities:

•    London Plan Policy:

o    GG3: creating a healthy city
o    GG5: growing a good economy
o    policy SD4: the CAZ
o    policy SD6: town centres and high streets
o    policy SD10: strategic and local regeneration
o    policy D8: public realm.

•    Economic Development Strategy:

o    promote the importance of well-designed, inclusive and high-quality public spaces, buildings and housing
o    work with local authorities, the voluntary, community and social enterprise sector to enable the creation of more socially integrated places
o    help to protect London’s role as a global hub for business, ensuring there is sufficient supply of office accommodation and investment in transport and infrastructure
o    help to make more efficient use of London’s streets by reducing car dependency and tackling congestion.

•    Environment Strategy:

o    objective 4.1: support and empower London and its communities, particularly the most disadvantaged and those in priority locations, to reduce their exposure to poor air quality
o    policy 5.1.2: protect, conserve, and enhance the landscape and cultural value of London’s green infrastructure
o    policy 8.2.3: increase the amount of sustainable drainage, prioritising greener systems across London in new developments, and retrofit of existing building stock
o    policy 8.4.5: reduce the impact of heat on streets.

Consultations and impact assessments

4.5.    In February 2025 the Mayor launched a public consultation on the proposal to designate a new MDA for Oxford Street and establish an MDC. The consultation also sought views on the principle of pedestrianising Oxford Street. 

4.6.    In accordance with best practice and the Mayor’s Public Sector Equality Duty, the consultation materials included two EqlAs: one covering the MDC proposals, and one covering proposals in relation to the principle of pedestrianisation of Oxford Street. This is explained further in section three.

4.7.    In June 2025 the Mayor approved publication of the consultation report. The report noted that 66 per cent of those who responded on the principle of pedestrianisation expressed support for it. The Mayor approved development of detailed proposals for pedestrianisation of Oxford Street, for public consultation.

4.8.    As the highway authority, TfL will hold a public consultation in November 2025 (running until January 2026) on detailed traffic and highways proposals that would facilitate pedestrianisation of Oxford Street, from Great Portland Street to Orchard Street. These proposals will be supported by a further EqIA.

Conflicts of interest

4.9.    No GLA officer involved in the drafting or clearance of this MD is aware of any conflicts of interest with the proposed programme. 

4.10.    If any conflicts of interest arise during the procurement process, officers will be required to declare that interest under the Contracts and Funding Code; and will be excluded from the procurement (or any other related) process or activity. This process will also be in accordance with the Code of Ethics and Standards for Staff, and accompanying guidance on registering and declaring interests. 

5.1.    Approval is being sought to transfer £6.29m to TfL in 2025-26 to cover activities supporting: 

•    the acceleration of the Oxford Street Transformation Programme 
•    road maintenance and improvement costs for Oxford Street and additional side streets, following their redesignation as GLA roads and side roads in September 2025 (under Mayoral Decision 3429).

5.2.     The estimated costs are set out below:

5.3.    Future maintenance arrangements and costs will be agreed in discussion between the MDC, once established, and TfL.

5.4.    As the Oxford Street Development Corporation (OSDC) is not yet established, the GLA will transfer the £6.29m directly to TfL under section 121 of the Greater London Authority Act 1999 (GLA Act). This will be funded from the GLA’s business rates reserve, with any implications being addressed through the 2026-27 GLA Group budget process, noting that this expenditure was previously expected to be incurred in 2026-27.

6.1.    The proposed funding would be transferred to TfL by way of a grant pursuant to section 121 GLA Act. The funding would be used by TfL for the purpose of carrying out its functions as highway authority for Oxford Street. Section 121(3) of the GLA Act provides that the grant must not be made subject to any limitation in respect of the expenditure which it may be applied towards meeting. 

7.1.    The below table sets out the activities covered in this MD: