Sadiq Khan has announced plans to pedestrianise Oxford Street in a bid to reinvigorate the nation’s “most famous high street” and attract more shoppers.

The mayor of London has announced the proposals to turn the road into a traffic-free avenue, alongside a wider regeneration of the shopping destination.

Pedestrianisation plans would be delivered via the creation of a new mayoral development area, City Hall said, with the backing of the new Labour government.

Khan said he hopes the scheme will see visitor numbers increase, more jobs be created, and growth boosted in London and across the UK for decades to come, while placing the location on par with New York’s Times Square and Barcelona’s Las Ramblas.

“Oxford Street was once the jewel in the crown of Britain’s retail sector, but there’s no doubt that it has suffered hugely over the last decade,” Khan said.

“Urgent action is needed to give the nation’s most famous high street a new lease of life. I want Oxford Street to once again become the leading retail destination in the world.”

While deputy prime minister Angela Rayner added: “Oxford Street is a world-renowned shopping destination and we want it to stay that way.

“This plan will drive growth by creating new jobs, generating economic activity, and giving a much-needed boost to London’s night-time economy.”

Banning traffic from the central London road, which welcomes some 500,000 visitors a day, was a key pledge in Khan’s 2016 mayoral manifesto but Westminster City Council, which controls the street, did not let the plans go ahead in 2018, after consulting with residents.

But the London borough came under Labour majority control in 2022, after having been Conservative-run since its creation in 1965.

Despite still generating around five per cent of London’s economic output, Oxford Street – home to Selfridges and John Lewis – has faced competition from online outlets, the closure of iconic brands such as Topshop, and the prevalence of American-style ‘candy stores’.

Khan’s plans to overhaul the area would see him establish a Mayoral Development Corporation (MDC) which would have planning powers to deliver the scheme, which he hopes would increase spending and generate higher tax revenue for the Treasury.

BusinessLDN CEO John Dickie said: “Oxford Street is London’s flagship high street and an attraction for visitors from across the country and all over the globe.

“We look forward to engaging with the new MDC… and other stakeholders to help to make Oxford Street an even more vibrant and attractive place to visit.”

While John Lewis executive director Peter Ruis added: “Oxford Street has been home to the first ever John Lewis store since 1864. We’re extremely proud of our place on the street.

“We’re delighted to see the plans announced today to transform ‘the nation’s high street’ and look forward to welcoming even more visitors to London’s West End.”

And Dee Corsi, chief executive of the New West End Company stressed: “[We have] long championed the transformation of Oxford Street, navigating various challenges.”

But she warned: “Given the history of past schemes, it is essential that we move swiftly to deliver this project. 

“We are pleased all partners are taking a long-term, strategic view of the issues at hand, ensuring a comprehensive approach to Oxford Street’s future – the devil will be in the detail.”