
Sadiq Khan urges Rachel Reeves to give more cash to London in spending review
Sir Sadiq Khan has urged Rachel Reeves to give London more funding in this week's spending review, suggesting she is not willing to give the capital any money for transport projects.
The London mayor has fought for support for several transport requests, as well as the power to introduce a tourist levy. He has also called for a substantial increase in funding for the Metropolitan Police.
But sources close to Sir Sadiq now say it would be 'unacceptable' if London is not given the required money to carry out the projects.
In a rare attack on the Labour government, they warned the chancellor now to return to the 'anti-London agenda' pursued by Conservative governments.
A City Hall source told The Independent: 'Sadiq will always stand up for London and has been clear it would be unacceptable if there are no major infrastructure projects for London announced in the spending review and the Met doesn't get the funding it needs.
'We need backing for London as a global city that's pro-business, safe and well-connected.'
The source said a 'return to the damaging anti-London approach of the last government would harm London's vital public services and jobs and growth across the country'.
They added that the way to support the rest of the UK is not to level down London, adding that 'when London does well, the whole country does well'.
Concerns in City Hall are centred on the fear London will not receive any of the £113 billion in infrastructure spending unlocked by the chancellor 's changes to her fiscal rules.
The mayor's main priorities ahead of the spending review included the Docklands Light Railway (DLR) being extended to Thamesmead and the extension of the Bakerloo underground line.
Ms Reeves has openly discussed prioritising spending outside of London and the south east in her spending review, altering the Treasury's investment rulebook to free up cash for the North and Midlands.
The chancellor has already unveiled more than £15 billion of spending pledges for mayoral authorities in Tyne and Wear, Greater Manchester and the West Midlands, along with a renewed tram network in South Yorkshire and a new mass transit systems in West Yorkshire.
And she has said Britain 'cannot rely on a handful of places forging ahead of the rest of the country'.
The investment drive comes after Ms Reeves promised to review the government's Green Book, which is used to judge the costs and benefits of projects, to 'provide objective, transparent advice on public investment across the country, including outside London and the south east'.
The Treasury was asked to comment. The row between City Hall and Ms Reeves comes as every Whitehall department has signed off on the spending review plans bar the Home Office, which is locked in last-minute negotiations over its budget.
While the chancellor is expected to announce above-inflation increases in the policing budget when she sets out her spending plans for the next three years on Wednesday, she is also set to push through a squeeze on other areas of the Home Office's budget.
Downing Street has now become involved in the talks as they come down to the wire.
Last week, Ms Reeves acknowledged she had been forced to turn down requests for funding for projects she would have wanted to back, in a sign of the behind-the-scenes wrangling over her spending review.
The Department of Health is set to be the biggest winner, with the NHS expected to receive a boost of up to £30 billion at the expense of other public services.
Meanwhile, day-to-day funding for schools is expected to increase by £4.5 billion by 2028-9 compared with the 2025-6 core budget, which was published in the spring statement. Elsewhere, the Government has committed to spend 2.5 per cent of gross domestic product on defence from April 2027, with a goal of increasing that to 3 per cent over the next parliament – a timetable which could stretch to 2034.
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Telegraph
29 minutes ago
- Telegraph
Khan accuses Reeves of ‘levelling down London'
Sir Sadiq Khan has accused Rachel Reeves of 'levelling down' London after she refused to hand over billions for infrastructure projects. The Labour Mayor of London has been battling with the Treasury for funding to pay for the extension of the Bakerloo line and the Docklands Light Railway. He also wanted the Chancellor to give him the green light to impose a tourist tax on visitors to the capital, and to provide millions extra for the Metropolitan Police. But Ms Reeves's spending review, to be unveiled on Wednesday, is not expected to include most of Sir Sadiq's demands. A source close to the Mayor said he would continue 'battling' to get more money out of the Treasury even if he fails at the spending review. They said: 'Over the past nine years as Mayor, Sadiq has fought to deliver for London – in the best interests of Londoners and the whole country. 'We know that when London does well it means the whole country does well, and that it will simply not be possible to achieve national growth ambitions without the right investment and growth in our capital. 'We must not return to the damaging, anti-London approach of the last government, which would not only harm London's vital public services, but jobs and growth across the country.' The spokesman added: 'Sadiq will always stand up for London and has been clear it would be unacceptable if there are no major infrastructure projects for London announced in the spending review and the Met doesn't get the funding it needs… 'It's also important to recognise that parts of London still have some of the highest levels of poverty anywhere in the UK. 'Sadiq will always stand up for London and has been crystal clear that the way to level up other regions is not to level down London.' Reeves's policies A source at the Treasury pointed out that in the year since the Government came to power, Ms Reeves had come out in favour of a third runway at Heathrow and the expansion of Gatwick, Luton and City airports. The Treasury has also expanded late licencing in the capital, given approval to the pedestrianisation of Oxford Street, allocated money so that HS2 will run to London Euston and provided money for free school meals. Last week, Ms Reeves announced £15 billion more to be spent on transport infrastructure outside London and the south-east, part of what was seen as a rebalancing of government priorities away from the capital Research released on Monday from IPPR North found that if the north of England had received the same per person spending as the capital in the past decade, it would have received £140 billion more – enough to build seven Elizabeth lines. Over the decade to 2022/23, each year London received £1,183 per person, while the north of England got £486 per person and the Midlands £455.


North Wales Chronicle
33 minutes ago
- North Wales Chronicle
Spending review is ‘settled', says Downing Street
Chancellor Rachel Reeves is expected to announce funding increases for the NHS, schools and defence along with a number of infrastructure projects on Wednesday, as she shares out some £113 billion freed up by looser borrowing rules. But other areas could face cuts as she seeks to balance manifesto commitments with more recent pledges, such as a hike in defence spending, while meeting her fiscal rules that promise to match day-to-day spending with revenues. On Monday morning, Home Secretary Yvette Cooper was the last minister still to reach a deal with the Treasury, with reports suggesting greater police spending would mean a squeeze on other areas of her department's budget. Speaking to reporters on Monday afternoon, the Prime Minister's official spokesman said: 'The spending review is settled, we will be focused on investing in Britain's renewal so that all working people are better off. 'The first job of the Government was to stabilise the British economy and the public finances, and now we move into a new chapter to deliver the promise and change.' The Government has committed to spend 2.5% of gross domestic product on defence from April 2027, with a goal of increasing that to 3% over the next parliament – a timetable which could stretch to 2034. Ms Reeves' plans will also include an £86 billion package for science and technology research and development. Last week the Chancellor admitted that she had been forced to turn down requests for funding for projects she would have wanted to back, amid the Whitehall spending wrangling. Mayor of London Sir Sadiq Khan's office is concerned that Wednesday's announcement will include no new funding or projects for London. The mayor had been looking to secure extensions to the Docklands Light Railway and Bakerloo line on the Underground, along with the power to introduce a tourist levy and a substantial increase in funding for the Metropolitan Police. A source close to the mayor said on Monday that ministers 'must not return to the damaging, anti-London approach of the last government', adding this would harm both London's public services and 'jobs and growth across the country'. They said: 'Sadiq will always stand up for London and has been clear it would be unacceptable if there are no major infrastructure projects for London announced in the spending review and the Met doesn't get the funding it needs. 'We need backing for London as a global city that's pro-business, safe and well-connected.'


Glasgow Times
40 minutes ago
- Glasgow Times
Spending review is ‘settled', says Downing Street
Chancellor Rachel Reeves is expected to announce funding increases for the NHS, schools and defence along with a number of infrastructure projects on Wednesday, as she shares out some £113 billion freed up by looser borrowing rules. But other areas could face cuts as she seeks to balance manifesto commitments with more recent pledges, such as a hike in defence spending, while meeting her fiscal rules that promise to match day-to-day spending with revenues. Home Secretary Yvette Cooper was the last minister still to reach a deal with the Treasury (Jacob King/PA) On Monday morning, Home Secretary Yvette Cooper was the last minister still to reach a deal with the Treasury, with reports suggesting greater police spending would mean a squeeze on other areas of her department's budget. Speaking to reporters on Monday afternoon, the Prime Minister's official spokesman said: 'The spending review is settled, we will be focused on investing in Britain's renewal so that all working people are better off. 'The first job of the Government was to stabilise the British economy and the public finances, and now we move into a new chapter to deliver the promise and change.' The Government has committed to spend 2.5% of gross domestic product on defence from April 2027, with a goal of increasing that to 3% over the next parliament – a timetable which could stretch to 2034. Ms Reeves' plans will also include an £86 billion package for science and technology research and development. Last week the Chancellor admitted that she had been forced to turn down requests for funding for projects she would have wanted to back, amid the Whitehall spending wrangling. Mayor of London Sir Sadiq Khan's office is concerned that Wednesday's announcement will include no new funding or projects for London. Mayor of London Sadiq Khan (Lucy North/PA) The mayor had been looking to secure extensions to the Docklands Light Railway and Bakerloo line on the Underground, along with the power to introduce a tourist levy and a substantial increase in funding for the Metropolitan Police. A source close to the mayor said on Monday that ministers 'must not return to the damaging, anti-London approach of the last government', adding this would harm both London's public services and 'jobs and growth across the country'. They said: 'Sadiq will always stand up for London and has been clear it would be unacceptable if there are no major infrastructure projects for London announced in the spending review and the Met doesn't get the funding it needs. 'We need backing for London as a global city that's pro-business, safe and well-connected.'