A ‘new devolution deal’ is needed for London after the election

Central London says more powers are needed for City Hall to help the capital’s economy “fire on all cylinders”, local democracy reporter Noah Vickers reports.

The next government must hand over powers to London’s City Hall and district councils, a think tank has urged, as polls show Londoners trust local politicians more than Westminster.

The Center for London said a “new devolution deal” was needed for the capital to help its economy “fire on all cylinders”.

The Savanta poll, commissioned by the think tank, reveals that only around one in six Londoners (16%) said that of all levels of government, they have the most confidence in national decision-makers to act in their interests and those of their. community.

Conversely, twice as many said they trusted their local council the most (31%), while one in five (21%) said they trusted the Greater London Authority (GLA).

Almost half of Londoners (49%) also told Savanta that they support a higher percentage of their taxes being decided by local and regional government rather than Westminster. Only 16% said they would oppose it.

Mayor Sadiq Khan previously warned that despite the devolution seen under the last Labor government, Britain was still “one of the most centralized countries in the world and London has limited control over high taxes in the capital”.

He told the London Assembly last year: “The only funding we have control over is raised by a levy on council tax and a surcharge on business rates.

“Instead, New York has local control over funds from residential and nonresidential property taxes, sales and related taxes, and income tax revenues. It’s a similar story for Paris and Tokyo. In the UK these funds are spent by departments far away in Whitehall.”

The mayor also warned that this centralization “leads to London being pitted against other cities in competitive bidding for funding pots that wastes time and resources”, pointing out that “recent failed bids for business zones have cost London government in the region of £50,000′.

In a briefing paper published on Wednesday (3), the Center for London argues that the city in particular needs to see more control over skills, transport and local taxes – including the ability to introduce new revenue generators such as a ” tourist tax” like those found in many other European cities.

Center for London chief executive Antonia Jennings said: “With confidence in national government falling and support for more devolution growing, it is time to rethink London’s devolution deal.

“It is in the interests of the whole country that London is firing on all cylinders and in the interests of every Londoner that the city becomes less blatantly unequal.

“We know that London needs to tackle the productivity and inequality crises, and fast. A New Deal for London has the potential to be the key ingredient to making this happen.”

Emma Levin, associate director at Savanta, said: “In some ways, our results are not surprising – it has long been true that, when asked, people say they have more confidence in politics that are ‘closer’ to them, than in national governments.

“But our findings also suggest a partisan element to this, with Tory voters more likely to trust the Westminster government they currently control, and Labor voters more likely to trust local and municipal governments – the majority being led by Labour”.

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