Business groups push for broader fiscal and infrastructure powers for London mayor
Leading London business organisations are urging the government to grant Mayor Sadiq Khan extensive authority over taxes, spending and major transport projects.
BusinessLDN, the Central District Alliance and the London Heritage Quarter have released a report urging the UK government to give Mayor Sadiq Khan sweeping new powers over taxation, spending and infrastructure investment in London. The groups argue that the city should retain a greater portion of business rates and any additional revenue generated by future growth, enabling it to fund projects like the Bakerloo line extension, West London Orbital and eventually Crossrail 2 through novel financing models.
They propose replacing certain central grants with devolved funding under local control and recommend lifting the £500 million threshold that currently triggers government consent for locally financed schemes. The recommendations come after Prime Minister Andy Burnham pledged a fiscal devolution roadmap in the upcoming Budget and a white paper on tax, transport, housing and education reforms. Advocates such as Ruth Duston of London HQ and Alexander Jan of the Central District Alliance say the changes would boost long-term economic growth and match London’s global financial responsibilities.
Why it matters
Granting London more fiscal autonomy could reshape the city’s growth trajectory and set a precedent for mayoral powers across England.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage frames the story around the mayor’s opposition to a lower mansion-tax threshold and his push for a greener, fairer London, while right-leaning coverage frames it as business groups urging the government to grant the mayor broader fiscal and infrastructure powers.
LEFT
Focuses on the mayor’s criticism of a proposed mansion-tax cut and his advocacy for environmental fairness
RIGHT
Emphasizes business groups’ call for expanded taxation, spending and infrastructure authority for the mayor
The left emphasises
- opposes lowering the High Value Council Tax Surcharge threshold to £1.5 million
- warns the change would punish asset-rich but cash-poor households
- calls for a greener, fairer London
The right emphasises
- urges sweeping new powers over taxation, spending and infrastructure for the mayor
- advocates retaining a greater share of business rates and new growth revenue
- cites specific projects like the Bakerloo line extension and Crossrail 2
In this story
