Mayor of London, Boris Johnson, has launched a commission examining how the capital could keep hold of a greater share of the tax revenues it generates.

Chaired by Professor Tony Travers, who is a leading academic on government at the London School of Economics, the London Finance Commission has been set up as part of Mayor Johnson’s manifesto pledge to demand City Hall gets a fairer funding settlement from Government.

Launching the commission 19 July, Mayor Johnson said: 'The capital must not be seen simply as a cash cow for the rest of the UK and the time has come for London to take greater control of its own destiny. I firmly believe that Londoners should see more of the growing tax revenues they generate for the public purse staying here in the capital.'

Chair of London Councils, Hackney mayor, Jules Pipe, Birmingham City Council chief executive Stephen Hughes, Steve Freer, chief executive at pubic finance experts CIPFA and Alexandra Jones, who leads think tank Centre for Cities are among the finance and local government experts on the panel.

Objectives of the commission's initial inquiry will include assessing current funding arrangements, comparing them with international examples and examining the relative scale of London's public expenditure within the context of the Greater South East.

According to research produced by the Centre for Economics and Business Research, £1 in every £5 earned in London is used to subsidise the rest of the United Kingdom - a net subsidy of around 20%, equivalent to between £14-19bn annually despite the recession.

The panel will also investigate alternative options, especially the possibility of devolving more of the taxes paid by London’s residents and businesses.

Professor Tony Travers, chair of the London Finance Commission said the inquiry would allow the capital to be compared with overseas cities such as New York and Berlin, which have far more financial freedom than London.

'The government and Opposition have both stated they favour more freedom for English cities,'said Professor Travers. 'The Commission will analyse the case for London taking a significant step towards the kind of autonomy enjoyed by Scotland and Wales.'