A surge in business rates and council tax returns has handed Sadiq Khan a £142.6 million funding boost
A surge in business rates and council tax returns has handed Sadiq Khan a £142.6 million funding boost, which the Mayor intends to split between youth crime prevention, AI development, and London’s transport system.
Sir Sadiq Khan’s plans to spend £142.6million of the extra funding, discovered by City Hall, for next year’s budget – including £20million extra for “fares innovation” on the capital’s transport network and another £20million to help Londoners develop AI skills.
The Greater London Authority (GLA) will receive £134.9million more than expected in business rates revenue and £8.5million extra in council tax returns, the Mayor’s Final Draft Budget, published today (February 19), has confirmed. While the final policing grant settlement from the Home Office was £32.2million lower than expected, the GLA announced they will use £31.4million of reserves for the planned extra spending. This extra cash will be split between the Mayor, the Mayor’s Office for Policing and Crime (MOPAC) and Transport for London (TfL).
Where the money is going:
- Youth crime prevention will receive £50 million to provide support and opportunities aimed at keeping young Londoners away from gangs through targeted interventions.
- AI skills development will be funded with £20 million to help Londoners adapt to changes in the workplace and succeed in the future of work.
- Major events in London will receive £20 million to support and secure cultural, sporting, and business events across the capital.
- Transport innovation will get £20 million through TfL to trial “fares innovation” designed to increase passenger numbers on the network.
- Mobile phone theft crackdown will be funded with £4.5 million, including the establishment of a specialist Command Cell to tackle incidents in hotspot areas like the West End.
- Rough sleeping and tenant support will receive additional funding (amount unspecified) to provide emergency support, tackle homelessness, and improve London’s waterways for safe swimming.
- City Hall reserves will contribute £31.4 million to cover the overall spending package after the final Home Office policing grant came in lower than expected.
The Mayor’s critics on the London Assembly warned that the Budget is bad news for policing in London. Hina Bokhari, leader of the Liberal Democrat group, told the Local Democracy Reporting Service (LDRS): “This Budget will be a bitter pill to swallow for the Met.
“The Commissioner is being set up to fail, short-changed by the Government, let down by a Mayor who has failed to make the case for the money London needs, yet still expected to put 1,300 more officers on the streets without the cash to do it.
“We’ve already seen brutal choices, like the Mayor breaking his manifesto promise and shutting down police front counters across London. This Budget lays bare the bleak reality that even more devastating cuts are still to come.”
Neil Garratt, the City Hall Conservatives Budget spokesman, added: “Behind the Mayoral spin and cherry picking, this is a bad budget for London.
“Just since December, we’ve lost another £59 million from police, there’s still no sign of the money for any of the big transport projects we were promised, and now the Mayor is raiding the reserves. That’s reckless when the government is cutting even more from London next year.”
On the Mayor’s side, £50million will be invested in further support and opportunities for young Londoners to “keep them away from gangs and crime”, officials say. This will include “targeted interventions…to break the cycles of violence and deliver positive opportunities.”
Another £20million will be spent on taking forward recommendations from the AI and Future of Work Taskforce to help employees in London learn skills and “succeed in this changing environment”, with the same amount ringfenced for helping secure more “major events” in the capital next year.
Money will also be invested in tackling rough sleeping, supporting tenants and making London’s water spots swimmable.
On MOPAC’s side, £4.5million will be invested in a new crackdown on mobile phone theft on the capital’s streets, which includes a new Command Cell to respond to incidents in the West End.
Finally, £20million has been allocated to TfL to trial “fares innovation” as the network looks to increase passenger numbers. No detail has been provided on this measure, though City Hall sources have suggested that officials will use it to “implement innovative approaches” to achieve this.
Sir Sadiq said: “The common thread that runs through everything in this Budget is my desire to ensure that all Londoners can get the same shot at reaching their potential that London gave me and my family.
“Safety is the bedrock upon which all else can flourish. That’s why bearing down on crime and keeping Londoners safe is my top priority as Mayor and why I’m proposing record levels of investment from City Hall on policing and crime prevention.
“But we can’t be complacent as there’s still much more to do. I’ll continue to use all the levers at my disposal to fund the police, tackle violence against women and girls and provide positive opportunities for young Londoners so that we can build on the significant progress we’re making.
“I am also pleased to propose extra investment to support those sleeping rough get off the streets and help Londoners through the AI revolution, as we continue to build a fairer, safer London for everyone.”
Last month the London Assembly voted for any additional funding found between the Mayor’s Draft and Final Budget to be spent on policing and making tube stations step-free.
A motion from the Labour group was passed by a simple majority with the help of Liberal Democrat members, with the nine Conservative members voting against and the Green and Reform groups abstaining.
The vote is non-binding, which means that Sir Sadiq does not have to accept the outcome but will now be forced to produce a response as to why he will accept or reject the proposal when he presents his final budget next Thursday (February 26).
The London Assembly also has the legal power to overturn or pass final, binding amendments the Mayor’s Final Budget, but it will require two-thirds of members to do so – or 17 of the 25 Assembly Members, 11 of whom are Labour.
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