A memorandum of understanding has been agreed between the government, greater London Authority and London councils, which will explore options for business rates and the apprenticeship levy, as well as looking at local influence over careers and employment support services
In addition, the government said it will agree a second memorandum of understanding on health and social care. The move follows government progress towards city deals for Edinburgh and Swansea.
The Mayor of London Sadiq Khan welcomed the Chancellor’s announcement, saying: ‘I am pleased that the Chancellor has recognised that giving London more control is vital if we are to protect jobs and investment in the aftermath of Brexit. London has a bigger population than Wales and Scotland combined, but we have far less control over how taxes are spent and public services are run.’
However, Kahn added that London did not get everything it needed today. ‘I am disappointed that the government did not use the opportunity to fully fund our police force or pledge their support for Crossrail 2,’ he said.
‘And businesses across the capital still face a clear and present danger to their future as a result of business rates increases despite the proposals outlined by the Chancellor today.’
Caroline Artis, EY’s managing partner for London said a wide range of London businesses will be delighted if issues like congestion and funding infrastructure can be addressed by the GLA and London Councils, rather than the central Government.
‘Equally the exploration of further devolution of business rates, apprenticeships and health and social care should all be welcomed,’ she said. ‘Londoners will expect to see huge improvements in roads, rail and the Underground which will help keep London focused on a global future outside the EU.’
According to the Mayor, Many of London’s global competitors enjoy much more control over public spending and services in their cities. New York keeps around 50% of the taxes raised in the city and Tokyo keeps 70%.
