Devolution will give London the powers it needs to thrive
The government’s plans for a new era of devolution means three things for London, all of which have the potential for the better and for good, says Sadiq Khan
When the late, great John Prescott outlined his vision for a Mayor to lead our capital, he said it would “provide a choice and a voice for London – and return government to the people of London.” In the referendum which followed, an overwhelming majority of Londoners indicated that they shared his ambition. Our capital’s government was duly restored and as Londoners, we would once again have the opportunity to decide our own future.
Twenty-five years after passing the legislation which led to the creation of City Hall, the new government has this week published its proposals for a new era of devolution in London and across England. This announcement means three things for our capital, all of which have the potential to change our city for better and for good.
First, the government has pledged to abandon the arrangement by which City Hall is allocated multiple small pots of money with onerous rules attached and replace them with a single financial settlement with greater freedom. This is a reform I have wanted put in place for some time and will let London set its priorities. For example, instead of getting a myriad of skills funds from Whitehall, we will receive one and control how it is invested. Local leaders and communities know their areas best – giving us flexibility will allow us to use our knowledge of our jobs market and the opportunity to make our money go further.
Second, work will begin to remove barriers to economic growth in London. This will include making it easier for us to build homes on TfL land and opening a route for the Mayor to request future devolved powers. And third, to ensure London remains the most attractive place in the world to work, study, visit and invest, City Hall and national government will establish a joint review and examine the powers and policies of other global cities to see how we can improve how our capital is run.
England is one of the most economically and politically centralised nations in the world – and it is to our detriment. These reforms will not only be to the long-term benefit of London but are central to the government meeting its promise to expand the economy and ensure the benefits are felt across our country.
Growing the national economy
Ceding power when you have worked so hard to earn it might appear counterintuitive, but it is a decision the new government has taken in the national interest. When cities and regions reduce unemployment, our national economy grows. When we develop the talents of our people, our whole country succeeds. And when we improve public health, our entire nation benefits.
In London today, every state primary pupil will be offered a free school meal, our city’s air is drastically cleaner to breathe and everyone can make use of our hopper bus fare. None of these achievements would have been possible without the devolved powers I have had at my disposal to make them a reality.
Spreading power away from the centre not only works in practice, but it is right in principle. At a time when trust in our democratic system, national institutions and public services has eroded, making sure decisions are made as close as possible to the people they affect can restore faith. If we really want to take back control, this is how it will be accomplished.
Granted, a White Paper on systems of government is unlikely to feature as a leading topic of debate in London’s offices, homes and pubs, but this piece of work will have far reaching consequences for our city and across England. It also reveals a great deal about how this new administration intends to govern. If the last government was only interested in occasionally patching up the odd rusty pipe, then this new one has shown it is serious about replacing the entire system with one fit for the modern world.
If the last government was only interested in occasionally patching up the odd rusty pipe, then this new one has shown it is serious about replacing the entire system with one fit for the modern world
As Mayor, I will be looking to make the most of the opportunity. Following the successes of the Northern line extension and the Elizabeth line, this week’s proposals open the door to taking innovative approaches to financing a new generation of large-scale, long-term infrastructure projects.
All those years ago when John Prescott reinstated city-wide democracy to our capital, he was clear that Londoners “will expect the Mayor to deliver real improvements in their quality of life”. As this government strives to build on his legacy and given what devolution has already achieved, Londoners can now raise their expectations.
Sadiq Khan is Mayor of London