Prime Minister Burnham outlines new powers for London under mayoral deal
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Prime Minister Andy Burnham announced a “London Deal” with Mayor Sadiq Khan, handing the capital expanded tax and business-rate powers to help pay for transport upgrades and housing that generations of underinvestment have denied.
Prime Minister Andy Burnham said the government will work with Mayor Sadiq Khan and the Greater London Authority to give the capital the additional powers and tools needed to unlock growth for ordinary Londoners, not just for the wealthy and well-connected. He described the initiative as the first step toward a “London Deal” that will strengthen transport links, increase housing supply and attract investment into communities that have long been left behind.
Burnham and Chancellor John Healey met residents at the Abbey community centre in Westminster after the Budget, where the prime minister rejected claims that devolving powers to London would disadvantage the rest of the country. > “There’s a misconception that giving more power to the rest of country somehow means London getting less. It couldn’t be further from the truth,” he said.
The prime minister highlighted new mayoral powers over income tax and business rates introduced in the Budget, noting they will enable City Hall to borrow roughly £10 billion for projects such as the Bakerloo line extension and the West London Orbital. He also praised Mayor Khan’s plan to open Stratford International Station to cross-Channel services, calling the post-Olympic transformation “extraordinary” and pointing to persistent deprivation in some communities that still shows how uneven the city’s prosperity remains.
Government support will fund a £20 million upgrade to Stratford International and improvements to Euston station’s tube network through two Business Rate Retention Zones. Burnham said the aim is to ensure that “London’s success is Britain’s success” by delivering housing, skills, business support and new investment across the city, rather than allowing growth to remain trapped at the top.