Sadiq Khan demands more funding for London policing

Mayor of London Sadiq Khan has formally presented his three primary objectives for the forthcoming Autumn Budget. These centre on securing greater fiscal autonomy for the capital, ensuring sustainable financial support for housebuilding initiatives, and increasing investment in essential public services, notably the Metropolitan Police and the London Fire Brigade.

Mr Khan stated that the cumulative effect of 14 years of Conservative government policy has led to a significant reduction in funding for core services. He reported that approximately one-third of the essential funding has been lost, a situation he has been actively lobbying ministers to address in advance of the Budget.

Fiscal Devolution and Business Rates

A key element of the Mayor's lobbying efforts involves advocating for enhanced fiscal devolution. This includes proposals for greater retention of business rates and an extension of the business rates supplement. This supplement, a 2p per pound levy on larger non-domestic properties, was initially introduced in 2010 to fund the Elizabeth Line and is scheduled to expire in 2029.

Mr Khan expressed his view that increased devolutionary powers would equip London with the necessary tools and incentives to foster its own long-term economic growth. He believes that the proceeds generated from this growth could then be reinvested within the city, creating a beneficial cycle that supports both London and the wider national economy.

He welcomed the opportunity for London to take greater control of its future as the government prepares to publish further plans later this year, following the Autumn Budget on October 28.

Housing and Public Services

Beyond fiscal matters, the Mayor also called for sustainable funding mechanisms to bolster London's housing market. This request comes amid broader calls from business groups for the Chancellor to address the cost of housebuilding and support the delivery of new homes and infrastructure.

Muniya Barua, Deputy Chief Executive at BusinessLDN, commented that the upcoming Budget should focus on reducing the cost of doing business and facilitating the development of homes and infrastructure. She suggested that incentivising local leaders, fulfilling manifesto pledges on business rates, and reviewing the Building Safety Levy could all contribute to economic momentum.

Government Response

A spokesperson for the Treasury stated that the Chancellor is focused on supporting families, jobs, and economic growth, while adhering to fiscal rules. The spokesperson declined to comment on specific rumours but affirmed that decisions regarding taxation are matters for the Chancellor to announce at fiscal events.