Square Mile is protected from new planning laws

Central London will be exempt from planning changes to ensure that it remains a commercial powerhouse.

Ministers today announced a relaxation of rules which will allow offices to be converted into flats without planning permission.

But critics pressured ministers to exempt parts of London, fearing the changes would rob commercial districts such as the City of business space and jobs.

Mark Field, the Tory MP for the Cities of London and Westminster, said: “When this was first mooted I looked into it and the potential dangers, particularly in regards to the City as a commercial district.

“I had assurances the City would receive an exemption. Given its importance as a financial district, it’s critical its commercial integrity is not undermined and there is recognition of that.”

A government source also confirmed that other commercially critical areas of central London would be exempt.

Currently, councils give every property a use classification, which can be altered only with local authority permission.

Under today’s changes it will be possible to switch office space to residential use without permission for the next three years.

Buildings will be able to switch use between shops, restaurants, takeaways, leisure facilities and assembly areas such as village halls for the next two years.

Ministers hope the changes will boost the economy by removing bureaucracy which prevents particular types of businesses from opening in certain premises.