Prime Minister Burnham outlines new powers for London under mayoral deal

Prime Minister Andy Burnham said the government will work with Mayor Sadiq Khan and the Greater London Authority to give the capital additional powers and tools needed to unlock growth. He described the initiative as the first step toward a "London Deal" that will boost transport links, increase housing supply and attract investment.

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.

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.