A significant road project is set to commence at 1 Undershaft. The Streets and Walkways Sub (Planning and Transportation) Committee has approved the initiation of a Section 278 project, which will see the construction of a new road in Undershaft alongside extensive pavement and road reconstruction on Leadenhall Street and St Mary Axe.
The project, fully funded by the developer, has an initial allocation of £280,000 for the evaluation and design phase, which is intended to progress the project to Gateway 3. Design work, including the commissioning of surveys, is expected to begin in November 2026. The Section 278 / s38 agreement with the developer is anticipated by Summer 2028, with a temporary road in Undershaft planned for mid-2028. The implementation of the permanent scheme is scheduled to start in Early 2032, with overall completion anticipated by 2033.
The construction of a new road alignment in Undershaft presents a unique challenge, as it has little recent precedent in the Square Mile and therefore presents a moderate level of risk in terms of available resourcing,
according to Tom Noble, Portfolio Manager for Transport & Public Realm Projects at the City of London Corporation. The project will necessitate extensive cross-departmental working
and carries a key risk of Lack of existing knowledge in respect of construction of a new road in Undershaft, resulting in delays and budget increases.
The scope of the Section 278 works includes the construction of this entirely new road alignment, which will involve temporary alignments to facilitate the building's construction before the permanent alignment is reinstated. The final building scheme is not expected to be complete until 2033, meaning there will be several iterations of this alignment.
Beyond the general mention of contributing to City Corporation strategies, this road project is expected to yield tangible benefits for the City Plan 2040 and the City Cluster Vision. It will accommodate significant growth in the City Cluster area and prioritise pedestrian movement in key streets like St Mary Axe and Leadenhall Street. For the City Cluster Vision, it aims to deliver a core element of the vision to provide an exceptional urban environment for a thriving world-class destination, where people feel comfortable and safe and the quality of the user experience is paramount.
Specifically, it seeks to enable positive growth, enrich the sense of place with healthy and characterful spaces, and create a world-class destination by strengthening the area's unique offer. The project will also ensure local infrastructure is resilient and can support future growth, maintaining the area's status as a premier global business destination.
Furthermore, the project provides for exploring options to increase pedestrian priority in St Mary Axe. If a timed closure to motor vehicles is pursued, it would be subject to its own statutory consultation.
Councillor Edward Lord declared a non-pecuniary interest in the item as a member of the Leather Sellers' Company, which has an interest in property developments in the Undershaft area. He was permitted to stay for the discussion and vote.
The committee noted the project initiation and the budget for its progression. The total estimated cost for the project is between £4.341 million and £6.341 million.