Insurance company plans to build skyscraper in London's Square Mile

The proposed building, dubbed the 'Scalpel' will reach 206 metres in height and provide 58,197 square metres of office space. The plans also include space for shops and restaurants and the creation of a new open space on the west side of the development at the junction of Lime Street and Leadenhall Street.

WR Berkley will finance the entire £500 million project from its balance sheet and will initially occupy around a quarter of the building, with the rest to be let on the open market.

The planning officers said in their recommendation (69-page / 3.36MB PDF) that the building, which would sit within the eastern cluster of tall buildings, "would contribute to the richness of architecture in the City and to the area's character in general".

The report said that the proposal would support the strategic objectives of the City of London to promote the City as the leading financial and business centre and that it supports the economic policies of the London Plan and Core Strategy as the development is employment-led.

"The development would not harm the Outstanding Universal Value, special architectural and historic interest or setting of the Tower of London World Heritage Site and would not detract from the setting of nearby conservation areas or the setting of adjacent listed buildings," it said.

The proposals will go before the City's planning committee on 15 January. If approved, the Mayor of London will have 14 days to decide whether to allow the City to grant permission, to direct refusal or to determine the application himself.

Subject to approval, work on the scheme is expected to start this year and to complete in 2017.