London seeks more devolved powers despite Whitehall reservations

London is still contending with Whitehall over the full devolution of powers, Deputy Mayor Howard Dawber has stated. While Prime Minister Andy Burnham's government has begun granting the Greater London Authority (GLA) additional authorities, including the ability to retain a share of income tax, reservations remain within some central government departments.

Persistent Reservations from Whitehall

Mr Dawber, speaking at a Centre for Cities fringe event at the Labour Party conference in Liverpool, indicated that some Whitehall departments are still hesitant to cede extensive powers to local leaders. He recalled a past instance under the previous government where a request for devolved powers was denied, with the reason given being that the issue was "too important to devolve." While acknowledging a fundamental shift under the current administration, which has made devolution its "operating system," Mr Dawber suggested that not all central government officials are fully aligned. He cited an example where a department proposed setting up an assurance programme with key performance indicators and a monitoring team for a recently granted power, which he interpreted as a lack of trust. "We don’t trust you to spend the money is the inference. That’s not devolution," Mr Dawber told the Local Democracy Reporting Service.

The Deputy Mayor highlighted that the GLA operates on a significantly larger scale than other mayoral authorities, managing extensive transport networks and employing a substantial workforce, including those within TfL and the Met Police. This scale means the GLA handles budgets comparable to or exceeding government departments like the Foreign Office, necessitating tailored power-sharing arrangements.

Criticism over London's Omission and Tax Concerns

Prime Minister Andy Burnham has faced criticism for not mentioning London in his inaugural conference speech, with some interpreting this as an 'anti-London' stance. Concerns have been raised by critics such as Susan Hall, leader of the City Hall Conservatives, and Alex Wilson, a Reform UK assembly member, regarding the potential impact of proposed tax changes on Londoners. Ms Hall expressed worries about a tax regime that could affect employment and council funding, stating, "The prime minister is making big financial pledges without any idea about how he is going to pay for them, besides punishing pensioners." Mr Wilson added, "Andy Burnham’s failure to address his floated tax raid on Londoners is incredibly telling."

Mayor's Welcome and Future Aspirations

Despite these concerns, Mayor Sadiq Khan welcomed Mr Burnham's speech, describing it as setting out "a bold vision to rewire and transform our country." He highlighted potential gains for Londoners through new powers for City Hall. Marina Ahmad, chair of the Labour group on the London Assembly, echoed this sentiment, stating that London and its residents have much to gain from the new approach, contrasting it with previous Conservative governments.

Mr Dawber indicated that City Hall continues to advocate for further devolution, including the ability to use innovative funding mechanisms for major infrastructure projects. The ongoing dialogue with Whitehall aims to secure greater autonomy for London to manage its own affairs effectively.