Khan demands fiscal powers, housing funds, police boost from Burnham

Mayor of London Sadiq Khan has outlined three principal demands for Prime Minister Andy Burnham as the government prepares its autumn budget. The requests focus on fiscal devolution, securing funding for housebuilding initiatives, and enhancing support for essential public services, including the Metropolitan Police and London Fire Brigade. Khan stated that London has experienced a reduction of "a third of our core funding" over the last 14 years.

Devolution and Funding Requests

Khan is urging the new Labour administration to grant London greater control over its finances. This includes proposals for business rates retention and an extension of the business rates supplement, a levy currently funding the Elizabeth Line that is set to expire in 2029. He also called for "sustainable funding to support the housing market" within the capital. These appeals precede Chancellor John Healey's budget presentation, scheduled for 28 October. The Mayor expressed optimism about the opportunity for London to "take control of its future" following the government's announced expansion of mayoral powers.

The Mayor's office highlighted that further devolution could provide London with the necessary "tools and incentives to drive its own long-term growth," with the proceeds reinvested into the city. This, Khan told the London Assembly earlier this month, would create a "virtuous circle" benefiting both London and the national economy.

Business and Housing Sector Calls

Lobbying groups have also conveyed their priorities to the Chancellor. BusinessLDN, represented by deputy chief executive Muniya Barua, has called for measures to "bring down the cost of doing business and support delivery of the homes and infrastructure that London needs to grow." Their suggestions include incentivising infrastructure projects, reforming business rates, and re-evaluating the implementation of the building safety levy, a tax on new homes.

A Treasury spokesperson declined to comment on specific rumours but confirmed the Chancellor's focus on "giving families and businesses a bit of breathing space, back British jobs, and drive growth in every postcode." The spokesperson added that decisions on taxation are for the Chancellor to announce at fiscal events.