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Transport bosses have dropped plans to move London’s main coach station away from its historic home in Victoria.

The decision comes eight months after Transport for London revealed that it was reviewing the future of the 87-year-old Belgravia hub, which is used by 14 million passengers a year.

One option was to move it to a site near Royal Oak station near Paddington, but this was ruled out after residents campaigned against it.

However, today TfL said it had decided to stay put despite some of its leases for part of the 3.3 acre station site, owned by the Duke of Westminster’s property company Grosvenor, expiring in the early 2020s. Instead it will change the layout of the terminal, which serves 1,200 UK destinations and 400 foreign cities, and upgrade customer facilities.

Coaches using Victoria will also have to meet higher emissions standards equivalent to those required for cars from October next year, or be hit by a £100 daily fine. Helen Lee, head of coach operations at TfL, said: “Coaches play a critical role driving the economy of the capital and beyond, boosting tourism to London and providing affordable travel options with cities across the UK. Without Victoria Coach Station, coaches would still travel to the centre of the city but drop off and pick up on-street. This would increase noise, congestion and pollution.

“It would also deprive the 14 million passengers who use this affordable long-distance travel service every year of vital welfare facilities and ease of access to onward connections.”

Tfl said it was still looking for sites for potential “satellite” stations away from the centre of the capital to take some of the pressure off Victoria. Around a quarter of a million coaches depart or arrive at the station every year.

TfL said it will “work with industry, transport operators, London’s boroughs and passenger groups to identify appropriate locations for the supporting sites over the coming months.”

The Art Deco terminal building has been Grade II listed since 2014 and could not have been demolished, but property experts had estimated the site’s value as up to £150 million.

The decision was welcomed by passenger groups. Keith McNally, operations director at the Confederation of Passenger Transport, said: “This is great news for coach operators who provide affordable connectivity across the UK and Europe.”

Tim Bellenger, director of policy and investigation at passenger body London TravelWatch, said: “Its loss would have been a terrible blow for coach services and their passengers across the UK. It is a well-managed facility, in a good location which provides good connectivity. It also has excellent facilities.

“This news will be welcomed by passengers, particularly the elderly and disabled who value the easy bus-to-bus interchange.”