Marks and Spencer Group PLC (LSE:MKS) has been told by the UK High Court that it can appeal what one analyst has described as a "ludicrous" decision by Michael Gove to block the redevelopment of its store on London's Oxford Street.
Plans by the supermarket to knock down and redevelop its Marble Arch store have been in the pipeline for several years and in following the required planning processes considerable costs have built up.
However, Gove, the secretary of state for levelling up, housing and communities, rejected these plans back in July after pushback from environmentalists and heritage groups.
Now, the High Court has granted permission for M&S to appeal this decision through a Judicial Review.
Clive Black at Shore Capital Group (LSE:SGR), a house broker for M&S, welcomed the decision but said the debacle highlighted how “a failing government is stopping a fine British firm from re-investing, necessarily, and on a sustainable basis, in a still iconic shopping street”.
He added that the process was unnecessary, and both time and money were being wasted due to “the crass stupidity of a politician”.
“Time will tell what the outcome will be but ahead of the wasted legal fees and use of court time, M&S looks to be in a lot better shape than Gove's political party,” Black said.
“We must hope for common sense to prevail on the detail of this redevelopment and, perhaps, much more importantly, that British business can have a government that has some strategy, consistency, and an interest in the nation at heart rather than its own narrow self-interest.”
Shares in Marks & Spencer are flat on Tuesday, having opened at 254p.