The decision comes after the Mayor said there was “overwhelming” support for the plan from the 6,000 people who took part in a consultation, with two thirds backing pedestrianisation.
He also revealed that traffic would be banned further east than expected, with restrictions stretching from Orchard Street near Marble Arch to Great Portland Street near Oxford Circus.
It comes despite concerns from local people about where cars, buses and cyclists would be rerouted if Oxford Street was blocked off.
Cllr Adam Hug, leader of Westminster City Council, has said that the decision was not the local authority’s “preferred outcome” but added that it would “work constructively” with the Mayor’s team going forward.
Detailed proposals for how a mile-long stretch of the iconic shopping street will be pedestrianised are expected later this year.
To realise his vision, the Mayor will use new planning powers to take control of the street and some surrounding roads away from Westminster City Council and hand it to a Mayoral Development Corporation (MDC).
This approach has previously been criticised by Andrew Boff, chairman of the London Assembly planning and regeneration committee, who described it as “overkill”.
He said: “Does the Mayor need to put in a Mayoral Development Corporation to achieve this?
“Residents pointed to the fact that progress has taken place over the past few years working with the council and TfL – the pedestrian area has increased, and more social areas introduced.”
Westminster Council has echoed these comments, claiming Oxford Street has “roared back to life” after the pandemic.
But Sadiq Khan has claimed that the street “has suffered over many years”, blaming a combination of the pandemic, the growth of online shopping and retail parks.
He added: “Our plans are not only about creating a beautiful public space where people can shop, eat and connect – but transforming Oxford Street into a place Londoners and the whole of the country can be proud of, as we continue to build a better London for everyone.”
Cllr Hug said: “While the Mayor’s formal decision today was not the city council’s preferred outcome, it is far from unexpected, and it is now important to move forward together for Oxford Street’s future.
“Westminster Council will work constructively with the Mayor’s team to ensure the nation’s high street is reimagined in a way that works for visitors, shoppers, and our residents.”
Camden Council leader Cllr Richard Olszewski said: “This is a hugely significant development for central London.
“We look forward to continuing to work closely with the Mayor and other stakeholders to develop these proposals and work up in more detail the operational aspects of the proposed development corporation.
“These proposals are also set to benefit neighbouring areas like Fitzrovia and Holborn.”
