The Mayor of London has laid out his three main demands for Andy Burnham in next month’s Autumn Budget.
Sir Sadiq Khan said he was pushing the new Prime Minister and his Chancellor John Healey on fiscal devolution, funding for housebuilding and more money for “core public services” like policing.
The Mayor – who, like Mr Burnham, is a long-time advocate of more devolutionary powers – praised the new administration for enacting a “fundamental change” that will “free London to do more for itself”.
The Prime Minister has already announced a significant expansion of powers for Mayors across England, including plans for them to retain a share of income tax and pressing on with the previous government’s promise to allow authorities to impose and retain an overnight levy on visitors.
However, there are still more powers that could be devolved, including the ability for Mayors to raise taxes themselves or use innovative financing for major infrastructure projects.
Further devolution, Sir Sadiq has said, would give London “the tools and incentives to drive its own long-term growth and for the proceeds of this growth to be then reinvested in the city.”
“This virtuous circle would benefit not just London and Londoners, but would help drive the national economy,” he told the London Assembly last week (September 17).
“As we approach The Budget in October and the publication of further deals of the government’s plans late this year, I welcome this exciting opportunity for London to take control of its future.”
Ahead of Mr Healey delivering his Budget on October 28, the Mayor said he was lobbying ministers for “further fiscal devolution”, including business rates retention and an extension to the business rates supplement – a 2p per pound levy on larger non-domestic properties used to fund the Elizabeth Line that was introduced in 2010 but expires in 2029.
He also called for “sustainable funding to support the housing market” in London, and a boost for the Met Police and London Fire Brigade to combat “the impact of 14 years” of the Conservative government.
“A third of our core funding has gone,” he added. “You won’t be surprised to hear that those are the sorts of things I’ve been lobbying for in advance of The Budget next month.”
The Chancellor has also faced calls from lobbying groups to reduce the cost of housebuilding in the budget.
Muniya Barua, Deputy Chief Executive at BusinessLDN, said: “The Chancellor must present a Budget next month which helps to bring down the cost of doing business and supports delivery of the homes and infrastructure that London needs to grow.
“Incentivising local leaders to back growth-enhancing infrastructure projects through innovative delivery models, fulfilling a manifesto pledge to overhaul business rates, and looking again at implementation of the Building Safety Levy – a tax on new homes – would all help to put momentum behind the economy.”
A Treasury spokesperson said they would not comment on any rumours but told the LDRS: “The Chancellor is fully focused on his priorities, to give families and businesses a bit of breathing space, back British jobs, and drive growth in every postcode, underpinned by a commitment to meet the fiscal rules.
“As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
