Spending Review: Reeves leaves London short-changed
Chancellor Rachel Reeves’ inaugural Spending Review fell short for London, the capital’s business advocacy group has said.
Reeves’ announcements on infrastructure, transport and skills were received warmly but BusinessLDN has said the Chancellor had failed to fully deliver, leaving the capital “short-changed”.
The Spending Review included a four-year settlement for Transport for London with the £3 bus cap extended to 2027 and £1.2bn piled into “training and up-skilling young people”.
But John Dickie, chief executive of BusinessLDN, said: “The government’s growth mission can only be achieved by unlocking the full potential of London.
“As a UK-wide engine of growth, the capital accounts for a quarter of the country’s economy.
“Its substantial net contribution to the public coffers rightly supports spending in other parts of the country but must also enable London to grow.”
Dickie said there was a “baffling” lack of certainty around “shovel-ready” projects like the DLR to Thamesmead and Bakerloo line extension, which he said would “accelerate growth, create new jobs and open up sites for tens of thousands of new homes”.
Khan concerned about police funding
A significant portion of the Chancellor’s handouts were directed towards the North and Midlands.
This included the launch of a new local growth fund with a ten-year capital settlement for specific mayoral cities in the Northern regions.
Local government spending is set to jump 5.2 per cent to £15.8bn by 2028/29.
Mayor of London Sir Sadiq Khan said the Spending Review left him “concerned” with insufficient funding for the Metropolitan police.
This follows the head of the National Police Chiefs’ Council and the head of the National Crime Agency writing to the Prime Minister to warn of “stark choices about which crimes we no longer prioritise” if their funding plea is ignored.
Khan added: “It’s also disappointing that there is no commitment today from the Treasury to invest in the new infrastructure London needs.”
He said housebuilding ambitions could not be met without investment, potentially derailing Labour’s key target to build 1.5 million new homes by 2029.
Dickie said: “The onus is now on the upcoming 10-year infrastructure strategy and the industrial strategy to fill in the blanks as well as ensuring that London has the tools it needs to play its full part in the growth mission through further devolution.”