The mayor of London, Sadiq Khan, plans to override opposition to al fresco dining in Soho after the local council failed to apply to a scheme for seasonal pedestrianisation that is being introduced across the capital this summer.

From 2027, restaurants in London’s entertainment district will be allowed to put chairs outside in the warmer months despite a longstanding local row on the issue.

Khan announced on Monday that 13 London boroughs had received a share of nearly £500,000 to bring outdoor dining, events and extended opening hours to their streets throughout the summer and into autumn.

However, this year, pedestrianisation has been resisted in Soho despite the area having a very popular al fresco dining scheme during the Covid-19 pandemic. Westminster council has since opposed allowing an expansion of outdoor dining in summer.

Sources close to Khan said that new powers would allow him to overrule the council for the summer of 2027.

When people were able to socialise outdoors during the pandemic, Soho resembled continental Europe as temporary permits and road closures allowed venues to spill out into the streets.

However, the Soho Society, a residents’ group, complained about the noise caused by people drinking and dining outside, and the council wound up the scheme.

Khan said his new powers from government would allow him to overrule council decisions and open up central London to outdoor dining in the summer.

A source close to the mayor said: “Opening up our streets to al fresco dining and other events should be at the heart of supporting our brilliant hospitality venues over the summer and autumn. Yet the attitude of too many influential people around Soho is that bringing more fun and socialising to our streets is something to be thwarted and blocked.

“With new licensing powers coming to the mayor this year, we hope things will be done differently – supporting our amazing venues that want to expand and offer even more for their customers.”

Khan has said he will overrule decisions taken by Westminster council if it unfairly blocks venues from opening. This came after the Soho Society said it would be making representations on all applications for new bars and restaurants because any new openings added to the impact of noise and crime in the area.

The areas in London that will receive funding from the mayor’s office to create outdoor events include four large “al fresco projects” in Barking and Dagenham, Brent, Greenwich and Lambeth.

Short Blue Place in Barking will become a street food market with performances from arts and theatre companies, while Wembley High Road, Ealing Road and Kingsbury in Brent will have al fresco dining and more than 40 events. In Greenwich, General Gordon Square, Beresford Square and Powis Street will host events including World Cup and Wimbledon screenings, markets, performances and late opening as well as outdoor dinning. In Lambeth, Lower Marsh in Waterloo will be closed to traffic every Saturday from 9am to 9pm, with outdoor seating, extended business trading and events.

Khan said: “I’m delighted that we’re working with boroughs and local businesses to bring al fresco dining, live music, events and later opening hours to streets across our capital. By making it easier to extend opening hours and expand what’s on offer, I’m determined to support our hospitality and nightlife, as we build a better London for everyone.”

Eleven smaller “pocket” schemes in Brent, Camden, Ealing, Haringey, Hounslow, Islington, Lewisham, Newham, Sutton and Waltham Forest have received up to £10,000 each to deliver food and drink night markets, summer sessions featuring DJs and live music performances, and family-friendly community events.

These schemes are all voluntary and supported by the local councils, but Khan will be able to use new powers to open up more of London to outdoor dining by next year. Each borough has a different licensing system, but the powers allow the mayor to create a new London-wide strategic licensing policy, make formal representations on licensing decisions, be consulted when boroughs revise their licensing policies, and call-in strategically important decisions.

Kate Nicholls, the chair of UKHospitality, an industry association, said: “It’s fantastic to see so many London boroughs taking advantage of the mayor’s summer streets fund. From food markets and al fresco dining to World Cup screenings, it shows the power of hospitality to drive activity and bring our communities together. I look forward to seeing the success of all the events this summer.”