Plans for a £1bn retail and office development in central London have been given the go-ahead, in a scheme which could create 8,500 jobs, revealed Westminster City Council.

The Victoria Transport Interchange scheme, one of the largest planning applications received by Westminster City Council, has granted permission to create more than 200 flats as well as offices and shops.

The council said the first phase of the project, set to begin in autumn 2010, will create more than 1,200 jobs whilst demolition and construction is carried out, with a further 7,200 created once the development is completed, initially thought to be in 2017. Developer Land Securities is also set to work with Transport for London to help upgrade Victoria Station.

A proposal for the development had to be revised over fears the height of one of the buildings would destroy the city’s skyline. The scaled back scheme covers six acres and is made up of six buildings.