Marks & Spencer has been given the green light to demolish its flagship Oxford Street store, ending a fierce three-year planning battle over the art deco building.

Housing Secretary Angela Rayner ruled on Thursday that the plans can go ahead.

The retail giant wants to rebuild the store into a nine-storey building housing a retail space, a cafe, a gym and an office.

Stuart Machin, the group’s chief executive, wrote on X on Thursday: “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.”

He said the business could “now get on with the job of helping to rejuvenate the UK’s premier shopping street” through the flagship store.

The building, named Orchard House, was constructed in the late 1920s on the corner of the UK’s most famous shopping street, by Marble Arch in London.

M&S, which opened the flagship store in 1930, applied to Westminster City Council for permission to demolish Orchard House in 2021.

The plans have since been dogged by court cases and opposition from heritage and sustainability experts, culminating in then-Housing Secretary Michael Gove stepping in and eventually refusing the application in July 2023.

This was despite the council and local authority supporting the plans, and a government planning inspector granting approval.

But earlier this year, a High Court judge ruled that the government made a series of flawed decisions while trying to block the plans.

Today’s decision by the Government sends a strong and positive signal for businesses across the UK, particularly in flagship high street locations which are key drivers of economic growth

The judge said Mr Gove had “misinterpreted” national planning policy and gave “inadequate” reasoning over his decision after M&S said that blocking the refurbishment would be likely to lead to the store closing,

On Thursday, Ms Rayner decided to grant permission for the demolition and reconstruction, after the new Labour Government was formed in July.

Her decision took into account all the evidence submitted by M&S before the application was refused, including the planning inspector’s previous recommendation and court judgment, according to the approval document.

Dee Corsi, chief executive of the New West End Company – which represents 600 shops, hospitality firms and property owners around the West End – welcomed the approval.

“Today’s decision by the Government sends a strong and positive signal for businesses across the UK, particularly in flagship high street locations which are key drivers of economic growth,” she said.

“The redevelopment of Marks & Spencer’s flagship store at Marble Arch will help cement the West End’s status as a global destination for shoppers and office workers alike, revitalising Oxford Street West and reinforcing the message to international investors that the UK is firmly open for business.”