Government backs City skyscraper plans after heritage dispute

The UK government has approved development plans that permit the construction of skyscrapers in the vicinity of the Tower of London. Ministers have ruled that proposals submitted by the City of London Corporation provide sufficient safeguards to maintain the site’s Unesco world heritage status. This decision resolves a significant dispute that had stalled the adoption of the City Plan, which outlines development ambitions for the Square Mile until 2040.

Housing minister Matthew Pennycook announced on Thursday that he would withdraw his objections to the plan. His decision follows a review by the planning inspectorate, which concluded that the City’s proposals strike a better balance between heritage protection and economic growth than an alternative scheme proposed by Historic England. The heritage group had suggested a plan that would have restricted high-rise development to preserve views of the Tower, but the City of London Corporation argued that such measures would render skyscraper projects unviable.

The conflict initially emerged in July when Pennycook paused the approval process after the plan had already received initial sign-off. He requested an independent check to determine whether future high-rise buildings near the historic site would threaten its Unesco designation. During the dispute, a senior City planning official warned that the alternative restrictions could block as many as 20 skyscrapers. This would result in the loss of one million square feet of office space, 6,800 jobs, and £1.2bn in annual economic output. In response, nearly 200 major property developers in the City wrote to housing secretary Angela Rayner, urging her to resolve the matter swiftly.

Pennycook stated that he was reassured by the inspector’s findings, noting that they demonstrated a thorough assessment of the competing interests. He acknowledged that the City Plan provides substantial safeguards to protect the Tower of London World Heritage Site and mitigates the risk of harm to its attributes of Outstanding Universal Value. The City of London Corporation welcomed the outcome, describing it as an outstanding result for the local and wider UK economy. Chris Hayward, the Corporation’s policy chairman, emphasised that the independent review recognised the possibility of protecting a key heritage asset while supporting necessary national growth. Tom Sleigh, chairman of the planning committee, added that the decision proves there is no inherent choice between heritage and economic growth, noting that the City and the Tower have coexisted since the 11th century.