The mayor of London has unveiled government-backed plans to pedestrianise the capital's most famous shopping street.

The Government is set to give Sadiq Khan new powers to push through his long-desired proposal to make Oxford Street traffic free under its ‘partnership approach to working with cities and mayors’.

The mayor’s previous attempt to pedestrianise the road was blocked by Westminster City Council – which has developed its own £90m scheme to regenerate Oxford Street, without banning traffic.

The council said its plans were ‘ready to go’ and contractors were already preparing the site when it was told about City Hall’s plans just days ago.

Mr Khan will ask the Government to establish a mayoral development corporation to deliver his plans, which provides planning powers and enables him to overrule the local authority.

Westminster chief executive Stuart Love said the council needed more detail on the scheme, including how long it would take and how residents’ concerns would be addressed.

‘We will want to know how they will benefit from any proposals, particularly given the practical challenges pedestrianisation may have for the wider area,’ he said.

City Hall said ‘urgent action’ was needed to regenerate Oxford Street amid the rise of online shopping, the closure of flagship department stores, and the prevalence of ‘candy stores’ putting ‘significant strain’ on its attractiveness.

Communities secretary Angela Rayner said: ‘Oxford Street is a world-renowned shopping destination and we want it to stay that way.

‘By working with the mayor and local leaders, we can ensure it gets the boost it needs.’