The Budget and Performance Committee of the Greater London Authority Council met on Thursday 19 March 2026 to discuss the Oxford Street Development Corporation's budget and progress. Key discussions focused on the £144 million budget for Phase 1 of the regeneration project, the projected economic benefits, and concerns regarding potential disruption during construction.

The committee heard that the £144 million budget for Phase 1 of the Oxford Street regeneration project is intended to deliver the pedestrianisation of West Oxford Street, from Orchard Street to Great Portland Street. Projections suggest this could increase Gross Value Added (GVA) by approximately £82 million per year, support 781 jobs, and generate £30-40 million in additional VAT receipts and £10-20 million in business rates annually. However, concerns were raised about potential dips in economic activity during construction, though the Oxford Street Development Corporation (OSDC) stated that this would be factored into their risk management approach. The committee also scrutinised the OSDC's funding strategy, particularly the reliance on commercial income and the lack of secured sponsors to date, alongside the projected £27-28 million annual funding requirement by 2030-31.

Oxford Street Redevelopment

The committee received an update on the Oxford Street redevelopment project, focusing on Phase 1, which involves the pedestrianisation of West Oxford Street. Nabeel Khan, Chief Executive of the OSDC, outlined that the £144 million capital programme for this phase is set to deliver the pedestrianisation of the western section of Oxford Street over the next five years. He highlighted the potential economic benefits, including an estimated £82 million annual increase in GVA and support for 781 jobs.

Concerns were raised by Assembly Member Susan Hall regarding the transparency of consultation responses, specifically the lack of postcode segmentation to understand the views of local residents. Helen Kancic, Head of Investment Planning for Healthy Streets at TfL, explained that while postcode data is collected, TfL's standard approach is to analyse the totality of responses rather than prioritising specific groups.

The timeline for the project was discussed, with the Mayor aiming for the road to be traffic-free by the end of August 2026. A transitional scheme is planned before any permanent closure, allowing for testing and adaptation based on real-time feedback and stakeholder views. This transitional phase could last up to two years, depending on the final design.

Adam Barrett, Chief Finance Officer of the OSDC, addressed the £144 million capital cost estimate, noting that while highway alterations are more predictable, the urban realm element is subject to stakeholder engagement. He expressed confidence in the current budget figures but acknowledged that final costs would be driven by the final design.

Funding and Revenue

Significant discussion revolved around the financial sustainability of the OSDC. Adam Barrett, CFO of the OSDC, stated it was too early to provide a firm view on commercial income, citing numerous variables. He indicated that advertising revenue was an area of greater confidence, but the overall commercial strategy was a key priority for the OSDC's first year. A budget submission revealed an £8.1 million budget gap over 2027-29, primarily driven by accelerating interest and financing costs as capital expenditure ramps up. The budget currently makes no assumptions on commercial income or advertising revenue, which are expected to bridge these initial gaps.

Concerns were raised about the lack of secured commercial sponsors, despite the project being announced 18 months prior. Nabeel Khan, CEO of the OSDC, acknowledged the organisation's youth, having been incorporated only in January 2026, and stated that commercialisation and income generation strategies are being developed. He assured the committee that these discussions would begin in earnest now that the MDC is in place and able to take forward delivery mechanisms.

The potential for revenue generation through advertising on Oxford Street was discussed, with initial feasibility studies suggesting a range of up to £25 million per year, which could fund ongoing operating costs and contribute to capital costs. However, these figures are dependent on the final scheme design and the level and type of advertising installed. Contingency plans for commercial income being delivered later or at a lower level than projected involve the OSDC board consulting with the Mayor on how to approach these issues, with scope to scale capital spend up or down in terms of urban design.

Capital Programme

The £144 million Phase 1 capital cost estimate was discussed, with Adam Barrett expressing confidence in the figures. However, concerns were raised about potential cost spirals, referencing the LLDC's East Bank project. Barrett outlined that the OSDC would work with TfL's cost teams and advisors, reviewing design costs at the pre-contract stage and monitoring progress through the contract stage. Capital financing costs are projected to increase significantly, from £2.8 million in 2026-27 to £13.8 million in 2030-31. These costs are to be managed within core budgets and contingency, with interest rate assumptions worked out with GLA Treasury colleagues, and funds drawn down on a fixed interest rate basis. The loan period is expected to be fifteen years.

Transport Elements

Helen Kancic, Head of Investment Planning for Healthy Streets at TfL, detailed the required transport infrastructure and operational changes for Phase 1 pedestrianisation, including changes to traffic signalised junctions, bus stops, bus standing areas, and rerouted bus routes. Temporary provisions for seating and hostile vehicle mitigation will be implemented, transitioning to permanent designs as urban realm designs develop. The cost of these changes is to be detailed in a Part 2 session.

Concerns were raised about the displacement of traffic, including cycling, to surrounding roads. TfL is working with Westminster City Council on proposals for alternative cycle routes north and south of Oxford Street. If these schemes are not completed by the road closure, advice and guidance will be provided to cyclists. Bicycle parking facilities are also being factored into the design.

The potential impact of a change in Westminster City Council's administration on the scheme was discussed, with the MDC's statutory body status intended to ensure it crosses political life cycles. However, it was acknowledged that if a new council administration decided not to support cycle schemes, alternatives would need to be found.

Accessibility and Safety

Accessibility and safety were highlighted as key objectives. Helen Kancic confirmed that a thorough equalities impact assessment has been undertaken, including workshops with disability groups. While acknowledging limitations around bus stop locations, TfL is focusing on pleasant, clutter-free walking routes and ensuring adequate taxi ranks. Nabeel Khan added that inclusivity is a core design principle, with ongoing engagement with disability advisory groups and a commitment to co-design. The possibility of a shop mobility scheme is also being considered.

However, it was noted that there are no current plans for step-free access at Oxford Circus or Marble Arch stations due to exceptionally high capital costs, with Bond Street and Tottenham Court Road stations already step-free due to Elizabeth Line investment.

Regarding safety, Nabeel Khan stated that designs are incorporating features to ensure a safe and accessible space, with input from the Metropolitan Police and their designing out crime officers. This includes designing out hidden corners, considering dwell time, and promoting natural surveillance. The new West End Company provides soft policing, and discussions are ongoing with the Metropolitan Police and OSDC regarding new monitoring centres. It was noted that pedestrianisation in other cities has often led to a decrease in crime due to increased footfall and improved public spaces.

The potential for tents and rough sleeping was discussed, with assurances that LLDC will work closely with Westminster City Council and Camden Council, as well as the Mayor's Office, to put mitigations in place.

Governance and Powers

The OSDC's governance structure was discussed, with leaders from Westminster and Camden Councils sitting on the OSDC board. Nabeel Khan described the working relationship as constructive, with good operational work between teams. The OSDC will function as a Local Planning Authority (LPA) with the same transparency standards as other LPAs. An independent planning committee, separate from the board and executive team, is being recruited, with representatives from Westminster and Camden Councils, as well as independent members with specialisms in regeneration, transport, and sustainability.

Concerns were raised by Assembly Member Susan Hall about local residents' unhappiness regarding safety at night in pedestrianised areas and the potential for rough sleeping. Nabeel Khan assured that local views would be considered in the decision-making process, and a local resident group is being established to feed into the planning committee.

The question of licensing powers was raised, with it confirmed that OSDC does not currently hold licensing powers, which remain with Westminster City Council and Camden Council. Discussions are ongoing regarding the GLA potentially taking on licensing powers in some form.

The lifespan of the MDC was discussed, with no fixed end date. A three-year review period is built into the functions order, allowing the Mayor to assess the MDC's effectiveness and decide on next steps. The OSDC's business plan will include a three-year outlook, with longer-term forecasts for five, ten, and fifteen years.

Oxford Street West Redevelopment

The timeline for the first phase of pedestrianisation was confirmed, with the road closure to traffic expected by the end of summer 2026. A transitional scheme will be in place before the permanent scheme is established, allowing for testing and adaptation. The transitional phase could last up to two years, depending on the final design.

The capital programme for accessibility improvements is included within the OSDC's £144.3 million budget. Enabling works for bus stop relocation and repositioning will begin in April 2026, and the road will not close until these and other mitigations are in place.

The programme's monitoring strategy, outlined in the Equalities Impact Assessment (EQIA), will include qualitative and quantitative assessments to identify benefits and disbenefits once the first phase is complete. TfL will conduct detailed monitoring for up to three years after the scheme's full completion.

The interim urban realm improvements for the Christmas period will focus on additional seating and lighting, with no works in place for permanent measures at that stage. The pedestrian experience is expected to be far greater than currently, with overcrowding issues addressed.

The potential for illegal e-bikes on Oxford Street once closed to traffic was discussed, with a combination of hostile vehicle mitigation and pedestrian volume expected to make cycling at pace exceptionally challenging. TfL is working with providers to ensure geo-fencing is in place on dockless hire bikes to prevent them from being ridden on Oxford Street. TfL will also intervene quickly if bikes cause obstructions and transfer any costs back to providers.

The long-term delivery strategy for the remainder of Oxford Street beyond Phase 1 is being considered, with Hawkins Brown working on a whole-street concept plan. Discussions are ongoing with stakeholders such as the Portman Estate and Crown Estate regarding their proposals for Marble Arch and Regent Street, respectively, to ensure interconnectedness. The Mayor's aspiration remains to move towards pedestrianisation for the eastern section of Oxford Street in the long term.

Funding and Revenue

The committee expressed concerns about the OSDC's financial model, particularly the reliance on commercial income and the lack of secured sponsors. Adam Barrett, CFO of the OSDC, acknowledged the variables affecting commercial income but highlighted advertising revenue as a potential area of confidence. He stated that agreeing a commercial strategy is a key priority for the OSDC's first year. The budget submission shows an £8.1 million budget gap over 2027-29, driven by interest and financing costs as capital expenditure ramps up. This gap is expected to be bridged by commercial income and advertising revenue, but the final figures will depend on the scheme design and finalisation of advertising revenue.

Contingency arrangements for commercial income being delivered later or at a lower level than projected involve the OSDC board consulting with the Mayor on how to approach these issues, with scope to scale capital spend up or down in terms of urban design. The committee also noted the OSDC's £144 million capital programme, with concerns raised about potential cost spirals, referencing the LLDC's East Bank project. Barrett assured the committee that the OSDC would work with TfL's cost teams and advisors to manage costs within budget.

Capital Programme

The £144 million Phase 1 capital cost estimate was discussed, with Adam Barrett expressing confidence in the figures. However, concerns were raised about potential cost spirals, referencing the LLDC's East Bank project. Barrett outlined that the OSDC would work with TfL's cost teams and advisors to manage costs within budget. Capital financing costs are projected to increase significantly, from £2.8 million in 2026-27 to £13.8 million in 2030-31. These costs are to be managed within core budgets and contingency, with interest rate assumptions worked out with GLA Treasury colleagues, and funds drawn down on a fixed interest rate basis. The loan period is expected to be fifteen years.

Transport Elements

Helen Kancic, Head of Investment Planning for Healthy Streets at TfL, detailed the required transport infrastructure and operational changes for Phase 1 pedestrianisation, including changes to traffic signalised junctions, bus stops, bus standing areas, and rerouted bus routes. Concerns were raised about the displacement of traffic, including cycling, to surrounding roads. TfL is working with Westminster City Council on proposals for alternative cycle routes north and south of Oxford Street. If these schemes are not completed by the road closure, advice and guidance will be provided to cyclists. Bicycle parking facilities are also being factored into the design.

Accessibility and Safety

Accessibility and safety were highlighted as key objectives. Helen Kancic confirmed that a thorough equalities impact assessment has been undertaken, including workshops with disability groups. Nabeel Khan added that inclusivity is a core design principle, with ongoing engagement with disability advisory groups and a commitment to co-design. The possibility of a shop mobility scheme is also being considered. However, it was noted that there are no current plans for step-free access at Oxford Circus or Marble Arch stations due to exceptionally high capital costs.

Regarding safety, Nabeel Khan stated that designs are incorporating features to ensure a safe and accessible space, with input from the Metropolitan Police and their designing out crime officers. This includes designing out hidden corners, considering dwell time, and promoting natural surveillance. The new West End Company provides soft policing, and discussions are ongoing with the Metropolitan Police and OSDC regarding new monitoring centres. It was noted that pedestrianisation in other cities has often led to a decrease in crime due to increased footfall and improved public spaces.

The potential for tents and rough sleeping was discussed, with assurances that LLDC will work closely with Westminster City Council and Camden Council, as well as the Mayor's Office, to put mitigations in place.

Governance and Powers

The OSDC's governance structure was discussed, with leaders from Westminster and Camden Councils sitting on the OSDC board. Nabeel Khan described the working relationship as constructive, with good operational work between teams. The OSDC will function as a Local Planning Authority (LPA) with the same transparency standards as other LPAs. An independent planning committee, separate from the board and executive team, is being recruited, with representatives from Westminster and Camden Councils, as well as independent members with specialisms in regeneration, transport, and sustainability.

Concerns were raised by Assembly Member Susan Hall about local residents' unhappiness regarding safety at night in pedestrianised areas and the potential for rough sleeping. Nabeel Khan assured that local views would be considered in the decision-making process, and a local resident group is being established to feed into the planning committee.

The question of licensing powers was raised, with it confirmed that OSDC does not currently hold licensing powers, which remain with Westminster City Council and Camden Council. Discussions are ongoing regarding the GLA potentially taking on licensing powers in some form.

The lifespan of the MDC was discussed, with no fixed end date. A three-year review period is built into the functions order, allowing the Mayor to assess the MDC's effectiveness and decide on next steps. The OSDC's business plan will include a three-year outlook, with longer-term forecasts for five, ten, and fifteen years.

Oxford Street West Redevelopment

The timeline for the first phase of pedestrianisation was confirmed, with the road closure to traffic expected by the end of summer 2026. A transitional scheme will be in place before the permanent scheme is established, allowing for testing and adaptation. The transitional phase could last up to two years, depending on the final design.

The capital programme for accessibility improvements is included within the OSDC's £144.3 million budget. Enabling works for bus stop relocation and repositioning will begin in April 2026, and the road will not close until these and other mitigations are in place.

The programme's monitoring strategy, outlined in the Equalities Impact Assessment (EQIA), will include qualitative and quantitative assessments to identify benefits and disbenefits once the first phase is complete. TfL will conduct detailed monitoring for up to three years after the scheme's full completion.

The interim urban realm improvements for the Christmas period will focus on additional seating and lighting, with no works in place for permanent measures at that stage. The pedestrian experience is expected to be far greater than currently, with overcrowding issues addressed.

The potential for illegal e-bikes on Oxford Street once closed to traffic was discussed, with a combination of hostile vehicle mitigation and pedestrian volume expected to make cycling at pace exceptionally challenging. TfL is working with providers to ensure geo-fencing is in place on dockless hire bikes to prevent them from being ridden on Oxford Street. TfL will also intervene quickly if bikes cause obstructions and transfer any costs back to providers.

The long-term delivery strategy for the remainder of Oxford Street beyond Phase 1 is being considered, with Hawkins Brown working on a whole-street concept plan. Discussions are ongoing with stakeholders such as the Portman Estate and Crown Estate regarding their proposals for Marble Arch and Regent Street, respectively, to ensure interconnectedness. The Mayor's aspiration remains to move towards pedestrianisation for the eastern section of Oxford Street in the long term.