Marks and Spencer will be able to bulldoze and rebuild its Oxford Street store after Deputy Prime Minister Angela Rayner gives the plan her approval.
Ms Rayner, who also serves as Secretary of State for Housing, gave the go-ahead for the renovation after “taking into account all of the evidence” in the case.
M&S has been trying to get approval for the plan for years, having first submitted the proposals five years ago.
The renovation was first blocked by Michael Gove when he was Housing Secretary.
The dispute became a point of tension between M&S and the Conservatives when they were in government, but Ms Rayner’s decision has finally brought the battle to a close.
The move also indicates the Labour government’s eagerness to improve relations with businesses in the UK after Chancellor Rachel Reeves unveiled her £40billion tax raid in October.
CEO of M&S, Stuart Machin, was one of many bosses to sign a letter hitting out at Ms Reeves’ Budget.
But he has praised the Labour Government for greenlighting the Oxford Street stores renovation.
He said: “I am delighted that, after three unnecessary years of delays, obfuscation and political posturing at its worst, under the previous government, our plans for Marble Arch – the only retail-led regeneration proposal on Oxford Street – have finally been approved.”
Mr Gove had thwarted the plans because he feared it would “fail to support the transition to a low carbon future, and would overall fail to encourage the reuse of existing resources, including the conversion of existing buildings.”
In response, M&S accused the Tories of being “anti-business.”
However, the Ministry of Housing, Communities and Local Government has now issued a 144 page ruling explaining why the renovation will now get the go-ahead.
The ruling warned that “the likely loss of M&S in the event of a refusal of permission would cause significant harm to the vitality and viability of the west of Oxford Street.”
But, the decision has sparked anger from campaigners at Save Britain’s Heritage.
Henrietta Billings, the group’s director, said: “Our old, wasteful knock-it-down-and-start-again model is broken. There is a real appetite in the construction sector for change. They’re crying out for clarity from the Government.”
