High Court judge said Mr Gove 'misinterpreted and misapplied planning policy';
Signs & Spencer has won a decisive legal victory against Michael Gove in the battle over the multi-million pound refurbishment of his Marble Arch store.
The Housing Minister's decision to block the project was ruled unlawful by a High Court judge and was overturned.
M&S was successful in five of the six cases it brought, successfully convincing the courts that Mr Gove was wrong to reject its plans.
Sacha Berendji, the retailer's chief operating officer, said: «Today's decision could not be clearer: the court agreed with our arguments on five of the six points we put forward and ruled that the Secretary of State's decision to block the redevelopment of our Marble Arch store was illegal.
“The result has been a long, unnecessary and costly delay to Oxford Street’s only retail redevelopment, which would have delivered one of London’s greenest buildings, created thousands of new jobs and rejuvenated the capital’s premier shopping district.”
M&S wants to demolish the Art Deco building near Marble Arch and replace it with a new 10-storey complex.
The retailer argued that the age and layout of the building meant demolition and a complete refurbishment were the only viable option.
M&S's proposals were backed by the council, the mayor and the independent inspector. However, Mr Gove intervened to block the project, arguing it would «fail to support the transition to a low-carbon future and generally fail to encourage the reuse of existing resources, including the refurbishment of existing buildings.»
M&S warned, that Mr Gove's intervention casts doubt on its future on Oxford Street.
A High Court judge agreed with M&S that Mr Gove had «misinterpreted and misapplied planning policy» by blocking the scheme.
Ms Justice Lieven concluded that Mr Gove was wrong to argue that there was a «strong presumption in favor of building conversion» in planning laws.
In the ruling, the judge said the Housing Minister had “failed to deal with the consequences of the refusal” and the independent inspector “raised the possibility that, unless significant changes were made to the store, it could be occupied by numerous traders, including American candy and luggage stores.”
She found that Mr Gove had also failed to provide “adequate reasons” why he believed there would be no significant impact on the area if M&S did not invest or decided to abandon the site.
Mr Gove will now have to make a new decision on whether to approve the project or not.
Mr Berendji said: “The Secretary of State now has the power to reveal the broad benefits of this significant investment and send a clear signal to UK and global businesses that the Government supports sustainable growth and the regeneration of our cities.”
A Department for Equalization, Housing and Communities spokesman said: “We acknowledge this decision and are considering our next steps. It would be inappropriate to comment further at this stage.»
The decision follows months of controversy over the scheme, with criticism from M&S executives saying blocking the scheme was «pointless».
In an article in the Telegraph last year, Stuart Machin, chief executive of Marks & Spencer called the decision «anti-business» and said it would have a «chilling effect» on investment across the country.
He claimed Mr Gove had left property developers confused about what they needed to do. to get the green light for projects.
Mr Machin said: “The government is elected to govern and provide leadership, not to act as a pressure group, particularly on climate issues. It's one haphazard decision after another without clarity or direction, and Gove's decision only makes things worse.»
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