Pre-budget briefing from the Mayor of London

Sadiq Khan, Mayor of London – Autumn Budget 2017 These are the policies I included in my submission to the Chancellor of the Exchequer ahead of the Budget on 22 November. I am calling on him to include in his Budget settlement policies that will: ensure the Met and London Fire Brigade are properly funded; progress Crossrail 2; provide me with powers and funding to unlock additional homebuilding; include measures to properly tackle London’s polluted air; commit to working with London government to explore further the devolution of powers and funding to London; and support the West End Partnership’s proposals for government investment to help protect the iconic status of London’s West End.

 

Funding the Metropolitan Police

Keeping Londoners’ safe is my most important responsibility. I am deeply concerned by the funding crisis facing the Met Police, who work tirelessly to keep our streets safe and respond to security threats and crime. We have seen a marked increase in the number of attempted terrorist attacks in London this year, as well as an increase in the volume and complexity of crime and, most worryingly, a sharp increase in violent crime. This Budget must therefore signal an end to the years of real-term cuts imposed on the Met and the Chancellor instead should announce a real-terms increase to the Met police budget if we are to continue to keep Londoners and the city safe.

 

The Met has already delivered significant savings of more than £600 million since 2010 and a further £400 million of savings now has to be found over the next four years. This has already led to the loss of 30 per cent of police staff posts – from 14,330 to 9,985, and 65 per cent of police community support officers posts – from 4,607 to 1,591, plus most of the capital’s police station front counters and 120 police buildings. I have done everything I can to protect the frontline, including increasing the council tax precept by the maximum amount possible despite recognising the impact that this has on Londoners’ finances. Without urgent government action in the Budget it is inevitable that in the next year a process of significant and sustained reduction in officer headcount will have to begin and officer numbers will fall to below 30,000 for the first time since 2003 – just when we need them most. I am also repeating my call on the Government to urgently commit to provide the full funding of the National and International Capital Cities Grant to reflect the true additional costs that come with policing the nation’s capital. This grant is, according to Met assessments, underfunded by around £170 million and it is essential this activity is fully funded to stop London council tax payers continuing to subsidise important national functions.

 

Funding the London Fire Brigade

After the terrible tragedy at Grenfell Tower I asked the London Fire Commissioner to assess the specialist equipment required to support future rescue and recovery exercises. The initial assessment to cover the cost, operation and maintenance of new specialist equipment and the ongoing response to the Grenfell Tower fire and the associated inquiry and investigation means an additional £6 million is required now as well as an additional £6 million on an annual basis. I would urge the Chancellor to prioritise the safety of Londoners in this Budget and commit to this additional resource in his Budget.

 

Crossrail 2

London’s population is set to grow to 10 million by 2030, and while the North and elsewhere need rail investment, which I support, the transport network across the South East of England must also be able to meet the needs of the UK’s growing economy. That is why, along with leading businesses and politicians from across the political spectrum, we are fully committed to Crossrail 2. TfL submitted a business case to the Department for Transport earlier this year, and, as requested by the Government, we have proposed that half of the cost will be met by London. I am now seeking an urgent commitment from the Government to renew its support for this nationally significant scheme, to enable consultation on the route in January and to prepare for a hybrid bill in 2020. Crossrail 2 will significantly boost the UK’s competitiveness and will be key to driving the UK’s post-Brexit economic success as its benefits will reach far beyond the capital.

 

Housing

I am calling for an urgent and ambitious package of additional housing powers and a significant increase in funding from the Government to unlock the homebuilding London needs. We need more investment for affordable homes and infrastructure, expanded land assembly powers and planning powers and action on construction skills from the Chancellor. The housing crisis is the single biggest barrier to growth and opportunities in London. The amount of affordable housing in new planning permissions has risen from 13 per cent of planning approvals in 2014/15 to 38 per cent in the first six months of this year meaning we’re making real progress towards my long-term strategic target of 50 per cent across London. I have also earmarked £250 million for City Hall to use for buying and preparing land for new and affordable housing and reached a ground-breaking new deal with councils and housing associations to start building an extra 90,000 affordable homes to rent and buy over the next four years has been announced. My London Housing Strategy is out for consultation and the new draft London Plan will be published soon.

 

I know we need to go much further – but the Government must likewise step up to this challenge. An assessment of London’s housing need has shown we need to build 66,000 new homes every year in the capital to meet demand, roughly double the current rate. Around 65 per cent of these new homes will need to be affordable. New analysis shows government funding for affordable housing in London needs to rise five-fold to £2.7bn a year. The impact of Brexit could also result in a loss of 100,000 skilled EU workers from the construction sector which would be catastrophic to realising my ambitious plans for London. London needs the Government to play their part urgently to enable me to tackle London’s housing crisis.

 

Air quality

Air pollution is a serious threat to Londoners health and I have brought in a range of measures to make our air safer including, implementing the T-charge for the most polluting vehicles in October 2017; bringing forward the introduction of the Ultra-Low Emission Zone (ULEZ) in central London to April 2019; extending the ULEZ London-wide for buses, coaches and lorries in 2020 and up to the North / South Circular Roads for all vehicles in 2021. However, national government action is essential if we are to really tackle the capital’s pollution. l am seeking the introduction of a national diesel scrappage fund, new powers to manage emissions from the Thames and construction sites in the capital, reform of diesel taxes such as Vehicle Excise Duty and a comprehensive new 21st Century Clean Air Act. We need effective action from the Government if we are to reduce the harm poor air quality does to Londoners.

 

Devolution

The concentration of power in Whitehall is restricting Britain’s economic performance and the most effective way of rebalancing the economy and increasing growth is to give much greater freedom and responsibility to local areas. London has proved that devolution can work well and I welcomed the Government’s renewed commitment to devolution for London with the signing of a London devolution deal in March. However, cities and regions, including the new Metro Mayors who I met with recently, need to be able to set strategies that are right for them and we are calling on the Government to significantly increase the pace and scale of devolution in order to boost economic growth in Britain and improve public services. I am calling for a significant increase in fiscal devolution, with greater control over existing taxes and the revenues, rather than having to rely on Government grants. Greater fiscal devolution will give me the tools and incentives to increase growth and job creation.

 

Investment in the West End

 

I fully support the West End Partnership financing proposals for London’s West End as they will have a transformational impact on the area and will maintain its international competitiveness, improve air quality, maximise the benefits of the Elizabeth line and enhance safety and security. The West End Partnership Board and I are united in this vision to turn one of the world’s most iconic – yet polluted and under-performing – districts into the world’s leading retail, business and cultural destination. A commitment in the Budget to support this scheme will unlock additional private sector investment and generate additional Treasury receipts of between £3bn and £4.4bn over the next 15 years – all this for £310m government investment in phase one of the proposed transformation programme. London’s West End is a national asset and in face of increasing competition from other global cities it is vital that we ensure it remains an attractive, productive and world-renowned place to visit and do business.

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