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The Mayor of London, Sadiq Khan, has written to the Chancellor of the Exchequer, Rishi Sunak MP, outlining the needs of the capital from March’s Budget.  

Sadiq’s Budget submission focuses on the huge financial pressures the pandemic has placed on Londoners, businesses, communities, and the capital’s vital public services.

In his letter, the Mayor says: “The country is going through one of the most challenging periods since 1945. Thousands of Londoners have lost their lives, and thousands more have been struck down by the virus. Enormous pressure has been placed on our public services, particularly the NHS. Your forthcoming Budget is, therefore, one of the most important ever in this country’s peacetime history.

“I urge you not to take London for granted – there is no guarantee the city’s economy will continue to fire on all cylinders after this crisis. For London’s success to continue, the city needs careful consideration, a recognition of the unique challenges we face, and investment to support businesses, organisations, and people to succeed.

“At some point, restrictions will be eased and there will be some degree of normality again. As a country, we need to be ready at that point, to kick start the economy. This will necessitate a fiscal package similar to that we have seen in other countries, in order to stimulate demand.”

Mayor of London asks include: 

  • Extending the business rates holiday throughout 2021 and guaranteeing the furlough scheme until the vaccine is rolled out widely and restrictions are lifted.


  • Adequate and sustainable funding for the Metropolitan Police Service and London Fire Brigade.


  • Agreement of a fair funding settlement for Transport for London for 2021/22, which addresses the devastating impact of the pandemic on TfL’s finances, together with a new funding model.


  • Funding for the full repair and restoration of Hammersmith Bridge and for the provision of interim solutions such as the ferry.


  • Support to night-time economy businesses. 


  • Expand the eligibility of free school meal provision in line with recommendations in the National Food Strategy.


  • Urgent action to ensure London has the resources to provide COVID-secure accommodation to help keep rough sleepers safe and warm. 


  • Government to fully fund the GLA Group’s shortfall for 2020-21 caused by COVID-19 pressures.  To date the GLA Group, including the Metropolitan Police Service and the London Fire brigade, have incurred £84.7 million of costs that have not been covered by the Government’s various funding initiatives, a figure that is likely to increase during the current lockdown.


 Longer term asks include:

  • An increase in London’s £4 billion allocation of the next Affordable Homes Programme (AHP). For the funding period 2021-2026, London’s AHP allocation falls far short of the evidenced average of £4.9 billion per year needed between 2022 and 2032 to deliver 32,500 new affordable homes a year.


  • The introduction of an expanded Clean Air Fund for cities, and a £48 million investment by Government to match London’s investment in existing scrappage schemes.


  • Government funding for ‘shovel-ready projects’ including the extension of the Docklands Light Railway from Gallions Reach to Thamesmead, the electrification of the London bus fleet, and for Old Oak and Park Royal.
  • Double the Adult Education Budget.