The mayor of London has announced a £140m investment boost to help fight the capital’s housing crisis and improve the economy.
The funds are the result of a devolution agreement struck by the mayor and London Councils with the Government last year which will allow them to pilot the retention of 100% of business rates growth from this April.
This agreement will raise an additional £114m for the Greater London Authority in 2018-19. Sadie Khan has agreed to add an additional £26m to this pot.
The money will be spent on initiatives that will grow London's economy such as new commercial space and transport infrastructure. It will also be used to help tackle the housing crisis.
‘This is a fantastic example of devolution in action as it shows that when tax revenues are devolved to London government we are able to focus investment on the things that matter most to Londoners, including key infrastructure and support for businesses,’ said Mr Khan.
‘It also shows that it is possible for London’s boroughs of different political persuasions to come together and work with Government to act in the best interests of the entire city.’
The mayor also announced that a separate ‘collective strategic investment’ pot using 15% of the business rates growth generated from the 100% pilot will also be created.
Decisions on how this will be allocated will be made by the leaders of the capital’s 33 local authorities and the mayor collectively during 2018-19.
Cllr Claire Kober OBE, chair of London Councils said: ‘We know that London’s councils are best placed to deliver on behalf of their communities, and this additional funding underlines how much can be achieved when all of London’s boroughs work constructively together in the best interests of the capital’s residents and businesses.
‘This underlines how much can be achieved through devolved powers. The time is right for central government to give further powers to London, including the freedom to develop a fairer business rates system that can help the economy to grow and thrive.’
