MD3453 Decisions Relating to the Oxford Street Development Corporation

1.1.    The Localism Act 2011 provides the legislative basis for the Mayor of London to designate Mayoral Development Areas (MDAs), and for the Secretary of State to establish Mayoral Development Corporations (MDCs), to drive regeneration in those areas. To help them do so, the 2011 Act gives MDCs wide powers relating to regeneration, development and other activities. It also allows the Mayor to grant further powers enabling an MDC to perform some or all of the functions of the local planning authority for the area; and to grant discretionary relief to non­domestic (business) rate payers. 

1.2.    The Oxford Street Development Corporation (OSDC) was established as an MDC on 1 January 2026 under the Oxford Street Development Corporation (Establishment) Order 2025 to drive the regeneration of Oxford Street. It is anticipated that the transfer of planning functions will occur in Spring 2026, subject to Parliamentary process.

1.3.    This decision proposes that the OSDC’s activities are governed by a Governance Direction (Appendix A). This provides effective control, and an appropriate degree of scrutiny and accountability, for the OSDC’s decisions (financial and otherwise) and activities. This approach is in line with current arrangements in place for the other two London MDCs (the Old Oak and Park Royal Development Corporation and the London Legacy Development Corporation). 

1.4.    Ensuring that the right controls and governance are in place, upon the establishment of the OSDC, will enable the transparent, compliant and effective operation of the new corporation as it: 

•    develops activities and programmes that will support the regeneration of Oxford Street

•    delivers its statutory functions as the local planning authority for the Oxford Street MDA, once the transfer of planning functions become effective (subject to Parliamentary process). 

1.5.    The Mayor is invited to approve the OSDC Governance Direction (Appendix A) which sets out the matters upon which OSDC must consult the Mayor, matters upon which the OSDC must seek the Mayor’s consent and matters upon which the OSDC must seek the Mayor’s prior consent. The Governance Direction also includes a delegation to the Executive Director, Good Growth (or such other specified senior member of GLA staff authorised under the Mayoral Decision-Making in the GLA and GLA Financial Regulations) in consultation with the Chief Finance Officer (CFO) (where the exercise of the delegation involves a material financial matter), to exercise the Mayor’s functions in respect of responding on behalf of the Mayor to consultations and the grant or refusal of consent and whether conditions should be imposed on the grant of consent. 

1.6.    Under Schedule 21 paragraph 4(1) and (2) of the Localism Act 2011, the Mayor must determine the remuneration, allowances and pensions/gratuities of the OSDC’s Board members. The Mayor is therefore invited to approve the Scheme of Allowances for Board and Committee Members (Appendix B) which provides that, with effect from 1 January 2026, and subject to exceptions, the basic board allowance of £14,000 per financial year is payable to each Board Member, and £30,000 per financial year will be payable to its chair. Committee Allowances will be £4,000 per financial year for Chairs and £2,000 per financial year for Committee Members. It is anticipated that when planning functions are transferred to the OSDC – subject to Parliamentary process – a Planning Committee will be established. Any Independent Planning Committee Members (those Members who are not also Board members) would receive a £6,000 allowance per financial year. An independent Chair of the Planning Committee would receive a £16,000 allowance per financial year. Planning Committee Members/Chair who also sit on the OSDC Board will receive a £2,000 and £4,000 allowance per financial year respectively. These figures are in line with other MDCs' remuneration levels.

1.7.    The Expenses and Benefits Framework presented in Appendix C contains the rules for payment of expenses and benefits connected with work to the OSDC members (Board and Committee) which the Mayor is also invited to approve in this decision.

1.8.    In accordance with Schedule 21 paragraphs 4(5) and (6) of the Localism Act 2011, rates and eligibility criteria for payments made by the OSDC to or in respect of its staff are to be determined by the OSDC with the agreement of the Mayor. The Expenses and Benefits Framework presented in Appendix C also applies to staff and to external persons in certain circumstances. Insofar as the Framework applies to staff, the Mayor is invited to give his consent to the Framework. The OSDC Board will be invited to consider and adopt the Framework insofar as it applies to staff at its meeting on 7 January 2026. Should the OSDC make any amendments to the Framework (as set out in Appendix C) in respect of staff, it will be required to seek consent which will be considered by the Executive Director, Good Growth, in consultation with the CFO.

1.9.    Going forward, the Expenses and Benefits Framework (Appendix C) for staff and to external persons can be altered by the Board and with consent from the Mayor, in accordance with the 2011 Act and the proposed OSDC Governance Direction.

1.10.    Section 213(1) of the Localism Act 2011 provides that ‘an MDC may, with the consent of the Mayor, give financial assistance to any person’. This means that the provision of any financial assistance from the OSDC – of whatever size and in whatever form (e.g. by grants, loans, guarantees/indemnities, investment or the incurring of expenditure on behalf of another person) – must be formally approved by the Mayor before being made. Section 221 of the Localism Act 2011 permits the Mayor to give a general consent, which may be unconditional or subject to conditions. The Mayor is invited to approve the General Financial Assistance (Grant) Consent 2025, attached at Appendix D (General Grant Consent).  Forms of financial assistance by the OSDC which do not fall within the scope or the terms of the General Grant Consent will require Mayoral consent under section 213, regardless of the value.
 

2.1.    The Governance Direction is intended to formally record and set out the arrangements for the Mayor to be consulted on, or give consent to, certain decisions and activities of the OSDC, subject to certain conditions. The Scheme of Allowances for Board and Committee Members, and the Expenses and Benefits Framework, transparently set out the rules applying to the OSDC Members’ remuneration and expenses/benefits claims for the OSDC Members and staff. 

2.2.    Having the right controls and governance in place, upon the establishment of the OSDC, will enable the transparent, compliant and effective operation of the new corporation as it develops activities and programmes that will support the regeneration of Oxford Street. This includes:

•    developing strategies and providing visible leadership to address Oxford Street’s ongoing under performance as a visitor destination and economic driver

•    maintaining and improving the attraction of Oxford Street to visitors, investors and employers

•    building confidence and attracting investment by promoting Oxford Street as a globally significant retail and leisure destination

•    facilitating the delivery of detailed proposals for any agreed public realm interventions, and coordinating the management and operation of the street, to provide a safe and welcoming environment for visitors, workers and residents

•    supporting the development of Oxford Street’s retail and leisure offer, including curating an ongoing programme of activations to provide a world-leading visitor experience

•    establishing a dedicated and locally based team with the right skills and experience to achieve the regeneration of Oxford Street

•    harnessing exemplar design, including a strong focus on inclusion and accessibility, to deliver a world-class space and an attractive, sustainable and climate-resilient public realm

•    achieving London Plan targets for comparison shopping and office space

•    improving coordination and building consensus through effective engagement with key stakeholders, service providers, businesses and the local community 

•    developing and implementing sustainable commercial and financial strategies to support the long-term curation, activation and operation of the area

•    respecting the role and importance of the two local authorities within whose boundaries the MDA would be sited.

2.3.    The General Grant Consent will enable the OSDC to disburse grants in an efficient and effective manner that provides value for money to support the regeneration of Oxford Street, in line with the Mayor’s ambitions. 
 

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 (PSED) 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; and encouraging them to participate in public life or in any other activity where their participation is disproportionately low. 

3.2.    The relevant 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 is required to comply with the PSED when taking this decision. This, in broad terms, involves understanding the potential impact of policy and decisions on different people, taking this into account and then evidencing how decisions were reached.

3.4.    A public consultation was carried out pursuant to MD3327 to gather views on the Mayor’s proposals to establish an MDC to manage the regeneration of Oxford Street, and to designate Oxford Street and its surroundings as an MDA.  The consultation also specifically sought views on any impacts of the proposals on people with protected characteristics. The consultation materials included two Equality Impact Assessment (EqIA) documents – one relating to the proposed MDC, and another on the principle of pedestrianisation. The full EqIAs are available at: Transport for London, Oxford Street Transformation: Have Your Say. The Mayor was provided with the EqIAs, and took them into account in taking the decision to establish the OSDC and designate Oxford Street and its surroundings as an MDA.

3.5.    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 are subsequently enshrined within the GLA Group’s strategies, programmes and activities.

 
3.6.    The OSDC will be the single local planning authority for Oxford Street, once the transfer of planning powers occurs later in 2026. It will be necessary to ensure that relevant planning services remain accessible and accountable to local communities, following statutory requirements and learning from best practices with regards to public engagement.

3.7.    The creation of the OSDC allows a single organisation to consider Oxford Street, and its immediate surroundings, in a holistic manner. This will enable greater focus on the Mayor’s commitments to the regeneration of this area; and pay due regard to his equality and inclusion policies to promote an accessible and inclusive environment.

3.8.    By pursuing its proposed objectives to deliver an improved public realm, and provide a safe and welcoming environment, the OSDC will make Oxford Street more inclusive and responsive to the needs of all Londoners and visitors – including those with protected characteristics.

3.9.    Through efforts to achieve its proposed objective of improving coordination and building consensus among key stakeholders, service providers, businesses and the local community, the OSDC will undertake effective engagement with a range of Londoners – including those with protected characteristics.

3.10.    A key aim for the OSDC will be to create an attractive and inclusive neighbourhood that welcomes people of all ages and backgrounds. It will also contribute to the regeneration of the area, seeking to influence policies and practices of businesses and investors active in the MDA, to support the Mayor’s EDI objectives. This would include working with employers to create high-quality jobs; and ensuring those are accessible to all Londoners, including those with protected characteristics.

3.11.    The Mayor has also paid due regard to diversity when appointing members to the OSDC Board; and this principle will continue to apply to appointments and recruitment into the OSDC more generally and in decisions relating to setting up expenses, benefits and allowances for Members. 
 

Key risks and issues

4.1.    The Governance Direction is designed to mitigate the risk of the OSDC taking decisions, or undertaking activities and programmes, that are beyond the scope of its stated purpose, or are likely to have an impact on the GLA and its finances, without sufficient oversight by the Mayor. It is considered that the conditions included in the Governance Direction, and the more general close working relationship between the GLA and the OSDC, will ensure a proportionate level of scrutiny; and will not impede the OSDC from fulfilling the purpose stated for the Corporation by the Mayor.

4.2.    The Scheme of Allowances, and the Expenses and Benefits Framework, set out transparent parameters and limits for OSDC Members’ remuneration and use of public resources for the OSDC Members and staff. This reduces the risk of financial mismanagement.

Links to Mayoral strategies and policies

4.3.    The proposed decision is expected to support the OSDC in delivering against multiple objectives included in the London Plan, the Mayor’s Economic Development Strategy, and the London Environment Strategy, in line with legal, governance and transparency requirements. 

4.4.    The London Plan 2021 identifies Oxford Street as part of one of two international centres within the Central Activities Zone (CAZ).

4.5.    The proposed decision is expected to 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 development, and retrofit solutions
o    policy 8.4.5: reduce the impacts of heat on streets.

4.6.    The proposed decision also aligns with the ambitions of the London Growth Plan, the Culture Strategy for London, the 24-hour London vision, and the Healthy Streets approach. 

Consultations and impact assessments

4.7.    The public consultation on the Oxford Street transformation ran from 28 February 2025 until 2 May 2025. It received 6,642 written consultation responses. There were 4,391 responses in relation to the Mayor’s proposals to designate an MDA for Oxford Street and the establishment of an MDC, including from statutory consultees.

4.8.    EqIAs were undertaken for all the strategies referenced above. As the proposal set out in this decision will help deliver the objectives of these strategies, the original impact assessments are still relevant to the programme. 

4.9.    In accordance with best practice, and the Mayor’s PSED, the consultation materials included two EqlAs: one covering the MDC proposals, and one covering proposals in relation to the pedestrianisation of Oxford Street. 

Conflicts of interest

4.10.    No GLA officer involved in the drafting or clearance of this decision is aware of any conflicts of interest with the proposed decision. The sponsoring Executive Director for decisions relating to the Oxford Street Transformation Programme is the Executive Director for Good Growth. However, Philip Graham (current Executive Director for Good Growth) has been appointed as the Oxford Street Development Corporation’s Interim Chief Executive Officer. To avoid any conflict of interest, the Executive Director for Strategy and Communications provided clearance for this decision. 
 

5.1.    This Decision invites the Mayor to approve the OSDC Governance Direction, the Board and Committee Member’s Scheme of Allowances, and the Expenses and Benefits Framework for members, as well as give consent for the Framework in relation to staff.

5.2.    The OSDC Governance Direction contains requirements for the OSDC to obtain Mayoral consent for a number of activities including (but not limited to):

•    the OSDC’s annual budget as part of the GLA Group budget-setting process
•    any expenditure above the OSDC’s approved budget
•    any borrowing by the OSDC
•    any decision in respect of business rates reliefs and other business support schemes
•    any decision in respect of financial assistance to any person or organisation, which is not in the scope or terms of the General Grant Consent 
•    determining the rates and eligibility for staff remuneration, travelling and other allowances and pensions and gratuities.

5.3.    The Scheme of Allowances sets the Basic Board Allowances and additional Committee Allowances payable to OSDC Board and Committee Members. The cost to OSDC for payment of allowances per Board and Committee Member (excluding on-costs) is set out below in Table 1. 

Table 1

5.4.    No Board or Committee Member may claim more than £24,000 in allowances in any one financial year. This increases to a limit of £40,000 in allowances for the Board Chair. 

5.5.    Although the number of Board and Committee Members is yet to be finalised the OSDC has set aside sufficient budget resources to fund the cost of allowances in its first three months of operation in 2025-26, through the GLA: Mayor budget. The OSDC budget for 2026-27 will be confirmed through the GLA Group budget process, to ensure that the OSDC has enough funding to operate. This includes the payment of Board and Committee Member allowances; and payment of staff expenses and benefits.
 

6.1.    Section 220 of the Localism Act 2011 provides that the Mayor may give an MDC general or specific directions as to the exercise of any of the MDC’s functions which the MDC must comply with.  The proposed OSDC Governance Direction directs the OSDC as to the exercise of its functions.

6.2.    Schedule 21 paragraph 4(1) and (2) of the Localism Act 2011, provides that the Mayor is to determine the rates and eligibility criteria for payments made by an MDC to its members in respect of remuneration, travelling and other allowances and pensions/gratuities. The proposed Board and Committee Member’s Scheme of Allowances, and the Expenses and Benefits Framework for OSDC Board members determine the rates and eligibility criteria for such payments.  

6.3.    The Expenses and Benefits Framework also applies to staff. Schedule 21 paragraph 4(5) and (6) of the Localism Act 2011 provide that rates and eligibility criteria for payments made by and MDC to or in respect of its staff are to be determined by the MDC with the agreement of the Mayor. The Expenses and Benefits Framework presented in Appendix C also applies to staff and to external persons in certain circumstances for which the Mayor is invited to give his consent. 

6.4.    The giving of financial assistance, in any form, requires the approval of the Mayor under section 213 of the Localism Act 2011. Section 221 of the Localism Act 2011 provides that the Mayor may give a general consent, which may be unconditional or subject to conditions. The Mayor is invited to approve the General Grant Consent in respect of the OSDC. Forms of financial assistance by the OSDC which do not fall within the scope or the terms of the General Grant Consent will require Mayoral consent under section 213, regardless of the value.

6.5.    The Governance Direction provides that, in most cases, applications for Mayoral consent (whether required by the 2011 Act or otherwise) will be dealt with by the Executive Director, Good Growth, rather than the Mayor personally. Pursuant to section 38 of the GLA Act, any function exercisable by the Mayor on behalf of the GLA may also be exercised by any member of staff of the GLA, including the Executive Director, Good Growth, subject to any conditions that the Mayor sees fit to impose. To this end, the Mayor may make the requested delegation, as set out in the Governance Direction, to the Executive Director, Good Growth, including any specified member of GLA Staff listed in Appendix 3 to the Mayoral Decision Making in the GLA document.

6.6.    In taking this decision, the Mayor must comply with the PSED under section 149 of the Equality Act 2010. To this end, the Mayor should have particular regard to section 3 above of this report. 
 

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