A group representing more than 150 businesses has called for Soho to be included in Sadiq Khan’s proposed Oxford Street development area, in a move branded “totally outrageous” by a Westminster Councillor.

The Soho Business Alliance (SBA) has written to Sadiq Khan and the walking and cycling commissioner, Will Norman, advocating for its inclusion in the proposed Mayoral Development Corporation (MDC).

Mayor Khan announced in September he intends to implement the MDC in a bid to realise his long-touted ambition to pedestrianise Oxford Street. It would also see him given additional planning powers and the ability to override the local authority, Westminster Council. However, few details of the proposal have been released.

The Mayor is reliant on Angela Rayner as secretary of state for housing, communities and local government to make an order establishing the MDC, following consultation and consideration by the London Assembly. But it won’t happen without a fight. The revelation appeared to take the council’s Labour administration by surprise, which said it had only been informed of the plan days before Khan’s announcement.

Cllr Adam Hug, the council leader, wrote to Rayner and the Khan in an open letter outlining 10 “key concerns” with Mayor’s proposal. These included questioning its necessity, especially considering the council’s efforts in implementing its own £92mn designs for the area for which it carried out an extensive public consultation.

Just days later, the Conservative candidate Tim Barnes won a by-election in the West End ward in which Oxford Street is located. Cllr Barnes told the Local Democracy Reporting Service (LDRS) following the result that the Oxford Street pedestrianisation plans had come up on the doorstep.

In the SBA’s letter, seen by the LDRS, the group’s chair Rupert Power wrote the area has “suffered” in recent years in a similar way to Oxford Street.

“We would like to strongly advocate for Soho’s inclusion into the area covered by the MDC so that the future prosperity of the nation’s shopping street can also be supported with a food and leisure destination that makes this part of the West End the complete package,” he wrote.

“As well as the obvious benefits for our businesses, we are concerned that if Soho is excluded from the MDC area, there may be an adverse impact on pedestrian permeability, cycle routes and traffic flows. Soho needs to form part of the area being transformed under the MDC to ensure that Oxford Street does not have a negative impact on Soho’s streets.”

Power wrote that Soho suffers from issues ranging from poor lighting to there being little space to rest, or for activities such as al fresco dining. He added that by including Soho in the MDC it would enable it to rival the centres of cities such as Madrid, Barcelona and Bordeaux, which have amenities including low-traffic shopping streets and mixed-use neighbourhoods.

“We would welcome the opportunity to discuss this further and contribute our local expertise and energy to the development of the MDC which focusses on returning Oxford Street and Soho to some of the most vibrant and economically prosperous parts of London, if not the UK. The SBA is committed to working collaboratively with all stakeholders to ensure that Soho reaches its full potential as a world-class destination that London can be proud of.”

Asked for further comment on the SBA’s request, Power said: “We believe that by including Soho in the Oxford Street MDC, we can work together to revolutionise how this area is seen by the rest of the country and by the millions who visit. This is about creating a cohesive 24-hour neighbourhood that serves everyone who lives, works, and visits here.”

However, residents in Soho are already concerned about the evening and night-time economy and its associated noise nuisance along with crime and disorder.

A report earlier this year stated that the West End night-time economy is a driver for both “a large local drugs market” which fuels “organised crime including child criminal exploitation”, and “alcohol-related crime”.

On Thursday Cllr Patrick Lilley, Westminster Council’s lead member for Soho, responded on the social media site X to say: “This proposal from Soho Businesses Alliance that [the Mayor of London] should takeover Soho is totally outrageous and would create a nightmare for residents. We will fight this strongly.”

Cllr Paul Dimoldenberg, cabinet member for city management at Westminster Council, told the LDRS: “We do not believe the majority of local businesses support the Soho Business Alliance proposal. Some major Soho businesses were not even asked for their views before the letter was sent to the Mayor. It looks like the proposal for the Mayor to take over Soho is just the idea of a few self-interested businesses who see an opportunity for making a quick buck.”

Westminster Council’s cabinet member for planning and economic development, Geoff Barraclough, has said the council is “fighting to ensure local people have a powerful voice in the Mayor of London’s plans for Oxford Street and that the whole of the West End benefits.

“Soho is not going to lose out and we would oppose any plan to remove democratic control from the area.”

Barraclough says the West End and Soho have around 1,300 licensed venues, the majority open after midnight.

The Soho Society has questioned how the Mayor’s plans will work.

“Will there still be a planning process involving public hearings and consultation and appeals in the MDC area? Excluding all local voices from planning decisions in an area where thousands of people already live is not really in step with the stated purpose of the Localism Act.”

A spokesperson for the Mayor of London said: “Plans for a consultation on the MDC are still being established, and this includes defining the scope. We expect to bring forward this consultation in early 2025, at which time, more details will be available.”

In response to questions from London Assembly members Mayor Khan has given some indication of his intentions.

In response to Andrew Boff (Conservative) the Mayor said:

“I am considering pedestrianising Oxford Street by designating it a GLA Road which means it will form part of the TfL Road Network. This would be subject to consent by the relevant London borough or the Secretary of State. If it was designated as a GLA Road, it will enable TfL to carry out the necessary works to pedestrianise Oxford Street,”

Responding to a question by Caroline Russell (Green) he said:

“My proposals for a Mayoral Development Corporation (MDC) for Oxford Street are at an early stage and are subject to consultation with the London Assembly and others. The exact powers to be given to the MDC are yet to be determined but they will need to be aligned with my ambition of ensuring that the regeneration of Oxford Street secures the maximum benefits for London, residents and businesses in the area.”

He responded to a question by Hina Bokhari (Liberal Democrats) stating:

“My officers are working with Westminster City Council and the LB of Camden and will be engaging with residents, businesses, accessibility groups and visitor organisations as we put together the full plans including details of funding options and responsibilities. The scheme design will consider many important factors including traffic management, access for older and disabled Londoners, servicing of businesses, and innovative mobility approaches to ensure that everyone can benefit from this scheme.”

Additional reporting by Linus Rees.

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