In a pivotal legal battle over the future of Marks & Spencer’s flagship store at Marble Arch, London, the High Court has ruled in favour of the retailer, granting a judicial review against the Secretary of State for Levelling Up, Housing, and Communities, Michael Gove’s decision to deny planning permission for the redevelopment of the site.
Michael Gove initially refused planning permission in July, citing concerns over heritage and environmental impacts, thereby overturning the approval previously granted by the local council. Marks & Spencer’s CEO, Stuart Machin, labelled the government’s decision as “utterly pathetic,” prompting the company to launch a legal challenge in August. Machin expressed relief at the court’s acknowledgement of the merits of their challenge, emphasising the redevelopment’s importance for the site’s modernisation and sustainability.
The retailer’s legal victory is seen as the first step in a lengthy process to overturn what it views as a “senseless decision” by the government. Machin underscored the impracticality of refurbishing the existing store and highlighted the project’s potential to transform the site into a modern, sustainable building that would benefit local customers, colleagues, and the community.
M&S Operations Director, Sacha Berendji: “Today’s judgment couldn’t be clearer, the Court has agreed with our arguments on five out of the six counts we brought forward and ruled that the Secretary of State’s decision to block the redevelopment of our Marble Arch store was unlawful. The result has been a long, unnecessary and costly delay to the only retail-led regeneration on Oxford Street which would deliver one of London’s greenest buildings, create thousands of new jobs and rejuvenate the capital’s premier shopping district.
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Dee Corsi, chief executive at New West End Company said: “Today’s decision is a just result for Marks & Spencer, whose proposed development is a key part of Oxford Street’s and the West End’s future growth story. We are hopeful the successful appeal will now lead to enhanced clarity in the planning system for all developers to benefit from, whether they are pursuing a retrofit or a redevelopment. We like, Marks & Spencer, are in full support of a planning system which prioritises sustainable retrofits, where they are both commercially viable and have a clear environmental pay-off over the long-term.
“This added clarity can only be positive for our city centres – from flagship retail and leisure destinations, like Oxford Street, to local high streets – and would drive growth and investment within the U.K.’s property sector.
“The landmark decision to move forward on Marks & Spencer’s flagship redevelopment plans sends a positive signal to other investors that Oxford Street and the West End is a world-leading destination to do business.”
James Souter, Partner at law firm Charles Russell Speechlys commented: “This case goes to the heart of an uneasy tension between the protection of heritage assets, environmental concerns and developmental potential.
Today’s decision will be embarrassing for the Government, not least because of the public perception on the costs incurred. It could also give developers greater confidence in bringing forwards contemporary new-build schemes, even where the possibility of retrofitting existing structures is theoretically possible.
However, this does not automatically mean that planning permission will be granted – Gove will have to redetermine the appeal and could in theory still refuse planning permission”.
This legal development comes as Marks & Spencer reported a promising financial outlook, with first-half profit forecasts exceeded and expectations of a full-year profit increase of over 30% as part of its latest turnaround effort. The company’s shares have seen significant growth, doubling in value over the year, reflecting investor confidence in its strategic direction and operational performance.
The Department for Levelling Up, Housing and Communities has declined to comment on the High Court’s ruling.
