The City of London Corporation has reaffirmed its commitment to growth, investment and heritage protection after the Government requested further examination of one element of the City Plan 2040.
The direction, issued by the Minister of State for Housing and Planning, relates specifically to the assessment of tall buildings and their impact on the Tower of London World Heritage Site.
The Minister has asked for additional hearing sessions to consider an alternative approach raised during the examination process before Planning Inspectors issue their final report.
While the Corporation has expressed disappointment at the decision, it has stressed that the request is targeted and technical, and does not call into question the overall soundness of the City Plan 2040.
A Long-Term Plan For The Square Mile
City Plan 2040 is the City of London Corporationโs Local Plan, setting out the planning framework for development across the Square Mile.
The plan is designed to support economic growth, attract investment, create jobs and guide sustainable development in one of the UKโs most important commercial centres.
It also includes a move towards a โretrofit-firstโ approach to development, supporting climate action by encouraging the reuse and adaptation of existing buildings where appropriate.
The Corporation says the plan is complete and ready for adoption, subject to the Main Modifications consulted on earlier this year.
Balancing Growth And Heritage
The Government direction focuses on tall buildings and heritage impact, particularly in relation to the Tower of London World Heritage Site.
The City Corporation says this issue was examined in detail during formal hearings held more than a year ago and believes further hearings are unnecessary.
At the same time, the Corporation has reaffirmed its commitment to protecting and enhancing the Cityโs historic environment.
The City Cluster, in the eastern part of the Square Mile, remains a key area for future tall building development. The policy is intended to provide new office space, public realm improvements, pedestrian routes, cultural spaces and heritage benefits while focusing taller buildings in an appropriate location.
Continued Confidence In The City
Despite the delay, planning activity in the City remains strong.
In 2025, the Square Mile recorded its highest number of planning applications in a decade, with more than 500,000 square metres of office floorspace granted permission. That is equivalent to more than seven buildings the size of the Gherkin.
Around half of that office floorspace is already under construction.
Major schemes including 1 London, formerly 1 Undershaft, along with 60 and 85 Gracechurch Street, are progressing, reflecting continued confidence in the City as a global business district.
The Corporation says it will continue to approve and deliver major development against the City Plan 2040 target of at least 1.2 million square metres of net additional office floorspace over the plan period.
The Square Mile is also expected to need space for around 192,000 additional jobs by 2050, with vacancy rates in existing Grade A office space remaining historically low.
โLondon And The UK Need This Plan Adoptedโ
Tom Sleigh, Chairman of the City of London Corporation Planning and Transportation Committee, said the City Plan 2040 provides the certainty businesses and investors need.
He said:
โCity Plan 2040 is the framework investors and businesses commit to. Every month of delay is a month that certainty is missing, and schemes that were ready to proceed, with the investment behind them, are put at risk.
โLondon and the UK need this Plan adopted. This was avoidable, it is wrong, and it should be put right quickly.โ
Looking Ahead
The City of London Corporation says it remains confident that City Plan 2040 is a robust and deliverable strategy for the future of the Square Mile.
While the Government direction may delay adoption, the Corporation has made clear that it intends to continue supporting responsible growth, investment, jobs, heritage protection and climate-conscious development.
For the City of London, the plan remains central to shaping a Square Mile that is competitive, sustainable and ready for the decades ahead.