Network Rail has shelved plans by Sir Nicholas Grimshaw to redevelop the east end of London’s Paddington Station after the government refused to allow a grade I-listed vault to be demolished.

The original plan had been to extend the station concourse, provide a taxi interchange and develop 72,000 m2 of commercial office space. Now Network Rail intends to restore the steel and glass vault, which was erected in 1916 to match three earlier vaults designed by Isambard Kingdom Brunel.

The retention of the fourth vault will not affect Network Rail’s plans to build a Crossrail station below the western end of the station.

A spokesperson said: “This is our first priority, and it is becoming more and more likely that the government will come up with funding for Crossrail.”

An adjacent commercial development by Hammerson and Domain will also be unaffected.