The CAZ remains firmly at the centre of London's economic growth agenda in the Draft Plan, but as one part of a broader network of Strategic Economic Clusters, Opportunity Areas and Growth Corridors.
The unique nature of the CAZ and its strategic national and global functions will always set it apart from these other growth areas, meaning that policy must continue to facilitate and positively deliver its continued growth, resilience and attractiveness to investment.
The CAZ remains central to London and the nation’s economy and appeal
Policy PV2 continues to identify the CAZ and Northern Isle of Dogs (NIOD) as London's primary concentration of economic activity, and wider defined list of strategic CAZ functions. The broad geography/boundary of the CAZ also remains largely unchanged, despite speculation during the earlier consultation process that a wider review of Central London's role might emerge.
The internationally significant office markets, government institutions, visitor attractions, cultural destinations and commercial functions that define Central London therefore remain a fundamental part of the Mayor's vision for the capital. They are also key to realising a number of policy and growth objectives of the Plan. Central London also contains the most historic parts of London and its built heritage, which should be preserved and celebrated as unique assets and points of attraction for London’s global city status.
Breaking down the character of the CAZ
A key change in the Draft Plan is the disaggregation of the CAZ into ‘Core CAZ’, which prioritises the delivery of the defined strategic functions of the CAZ including offices and other commercial and cultural uses, and then ‘Mixed CAZ’ locations, where mixed-use development including residential uses are supported – with these designations reflecting their character.
A key link in terms of growth potential is then made to the defined ‘transformational gateways’ associated with national rail termini (Euston, Victoria, Liverpool Street, Paddington, Waterloo), for development that supports the strategic functions of the CAZ.
Offices – delivery, adaptation and affordable workspace
Changes in office policy in the Draft Plan include the removal of explicit employment generation targets (outside of opportunity areas and other defined growth areas beyond the CAZ), and the removal of a bespoke office development policy, as a move to more spatially/place defined policies and strategies in the Draft Plan.
The Draft Plan continues to promote and seeks to grow office development in the CAZ, as part of the area’s diverse economic ecosystem, and the internationally important functions of the City of London (finance, professional, business and technology services) and the West End (commerce, culture and experience), and the NIOD’s functions.
There is, however, greater nuance and pragmatism to the Draft Policy reflecting the significant variation in quality and viability of office stock across the CAZ, now explicitly promoting building in flexibility and adaptability to new Class E development for new schemes.
The refurbishment and redevelopment of office space is strongly supported to deliver enhanced and additional office stock, and there is flexibility built into policy to explore change of use to other CAZ strategic functions where this is not viable.
There is also a detailed affordable workspace policy, which applies to new office (and other defined commercial) development, and will need careful consideration for such schemes – but to be further developed in Local Plan policy.
The West End – diversity and adaptation
The Draft Plan continues to support the West End but places greater emphasis on flexibility, diversity and adaptation.
Oxford Street, Knightsbridge, the wider visitor economy, night-time economy, culture and leisure all feature prominently within the Mayor's wider vision for Central London. This sits alongside wider initiatives such as the newly formed Oxford Street Development Corporation where the Mayor is taking a direct role in its renewal and delivery, and broader ambitions to strengthen London's experience economy.
The result is a planning framework that remains strongly supportive of retail and commercial activity whilst recognising that future growth within parts of the CAZ may increasingly be driven by culture, leisure, hospitality and visitor attractions alongside traditional office markets, and the need to enhance the local environment, public realm, services and infrastructure to the benefit of all users.
Other policy implications
Design and tall buildings – Buildings over 30m in height are required to go through detailed compliance with the Draft Policy, however in the CAZ a majority of buildings are already over this threshold, meaning that a more bespoke approach may be appropriate as part of the place specific policy for the CAZ. The applicability of the new building heights optimisation framework to the CAZ is therefore also debateable.
Alternative residential/PBSA – there is no PBSA delivery target for Westminster or the City, despite the presence of a significant number of Higher Education institutions.
Housing delivery – Targets remain high (and growing) for a number of the CAZ boroughs, indicating that the CAZ still has an important role to play in housing delivery where appropriate.
For more information on the CAZ in the Draft London Plan, please contact Laurence Brooker or Katie Fong.
19 August 2026
