The London Assembly has warned that Londoners are facing a “double whammy” of rising transport fares and council tax contributions as Assembly Members prepare to grill Sadiq Khan on his budget proposals.
Last month, the Mayor of London published his consultation budget which revealed plans to increase the mayoral portion of council tax paid by Londoners by an average of £31.93 a year from next April.
It comes as TfL desperately seeks to balance its budget, while the Mayor’s Office for Policing and Crime (MOPAC) seeks more than 3,000 new officers for the Metropolitan Police.
On January 26, the London Assembly will scrutinise the mayor’s budget plans for the first time ahead of a vote on the final budget proposals at the end of February.
Conservative Assembly Member Susan Hall, who chairs the budget and performance committee, has warned that there are “gaping holes” in the mayor’s budget plans, and has called on Sadiq Khan to “balance the books in a sensible and sustainable way”.
Ms Hall said: “The mayor’s budget has some gaping holes, especially in relation to transport and policing, that urgently need to be addressed to make sure this city runs effectively. The mayor must take forward our cross-party recommendations, so that Londoners can continue to receive vital public services.
“Of course, the pandemic has changed everyone’s lives as we know it, but we still need to keep London’s economy going, the city moving and ensure Londoners are kept safe in their homes and on our streets. The city will suffer if it does not have the infrastructure, jobs and homes it crucially needs.”
While TfL has a funding requirement of £1.1 billion for 2022/23 and MOPAC is seeking ways to fund an additional 3,287 police officers, the London Fire Brigade is also facing significant cuts in the near future, with an £8.8 million budget deficit forecast for 2023/24.
Ahead of next week’s budget scrutiny meeting, the cross-party budget and performance committee has published a series of recommendations for Sadiq Khan to consider.
Among them is a call for TfL to provide clear details on the type of road user charging scheme being considered in London, as well as a recommendation for MOPAC to base its plans on expected levels of funding rather than hoping for longer-term settlements from the Government.
A spokesperson for the Mayor of London has said that Sadiq Khan will “focus his resources on building the better and brighter future all Londoners want and deserve”.
The spokesperson said: “The mayor will deliver a balanced budget which focuses investment on building a safer, greener and fairer city.
“This is despite the fact that the Government is only offering the mayor a one-year settlement which makes it impossible to plan meaningfully for the future.
“The Government is still refusing to properly fund public services in the capital. This has left Sadiq with no choice but to propose a council tax increase and changes to the fares system to help prevent the collapse of Transport for London (TfL) and ensure police officers and firefighters have the resources they need.”
Though the London Assembly is limited in its formal powers, it does have the ability to amend the mayor’s budget with a vote.
Assembly Members can propose amendments to the mayor’s budget, which require a two-thirds majority vote to be passed.
If no majority can be reached, then the mayor’s budget is passed with no amendments regardless of how Assembly Members vote on the final budget.
