Sadiq Khan welcomes Budget plan for London to keep more of the money it makes
Mayor of London Sadiq Khan has welcomed the devolution agenda outlined in the Chancellor’s Autumn Budget, including plans for cities like London to keep more of the money they generate.
In his Budget speech on Wednesday 28 October, Chancellor John Healey announced that mayors in cities across the UK would keep more of the revenue generated from business rates, with plans for them to also keep a portion of income tax in future.
The government wants local and regional governments to retain 100% of business rates income before the end of the decade. Healey said mayors will begin receiving a share of business rates from next year, replacing grants from central government.
Khan called the Budget “a positive and significant day for London”, praising the devolution initiative championed by Burnham and the Chancellor.
The government has also committed to bringing cross-channel rail services to Stratford International, which Khan said would create significant new opportunities for jobs, investment, and tourism in the city.
“Working with Number 10 North we’re delivering the largest devolution of powers to London seen in a generation,” he said.
“By giving London the ability to keep more of the money we raise, we can invest billions of pounds more in our future, helping to finally unlock transformational infrastructure projects such as the West London Orbital, the Bakerloo Line Extension and the Euston knowledge quarter project, supporting tens of thousands of new homes, jobs and economic growth.”
“Proper devolution is something I have been calling for years, and this government gets the scale of the ambition needed where previous governments have failed,” he said.
Khan also noted the government’s action to address the cost of living, which includes immediate measures to help household budgets such as a £100 once-off winter energy payment to 20 million households.
“Action to address the cost of living and the cost of doing business is very welcome,” he said.
“Support for rising energy bills will be vital for many Londoners as the conflict in the Middle East continues to send shockwaves through the global economy.”
“Alongside major new investment to tackle rough sleeping, to build more affordable homes and support for young Londoners to access vital skills training and employment opportunities, this Budget shows a real commitment to building a fairer, safer, greener and more prosperous London for everyone,” Khan said.
