How further devolution could benefit London

More business rate powers and responsibilities should be devolved to the Mayor of London to help deliver housing, infrastructure and transport investment for London.

Ten years on from the establishment of the London Assembly’s Devolution Working Group, the GLA Oversight Committee set out to examine how much progress has been made. It also set out to understand the impact of the Government’s levelling-up programme on devolution in London.

The Committee held two meetings in City Hall with guests in June and July 2022. As part of the investigation, the Committee submitted evidence to the Public Bill Committee on the Levelling-up and Regeneration Bill, and wrote to the Minister for London about its findings.

The Committee has today published a report focusing on fiscal devolution, devolution of public services, health devolution, enhanced powers for the London Assembly and the impact of Levelling Up on London.

The report identifies 21 recommendations aimed at the Mayor, and at both regional and central governments, including:

• The Mayor should have the same powers and responsibilities as the Scottish and Welsh devolved administrations in relation to business rates, including: the ability to determine the timing of revaluations; the setting of the non-domestic rating multiplier; relief and discount policies; and the ability to use locally raised revenues in a targeted way to deliver infrastructure, housing and transport investment.
• The Government should consider the implementation of a tourism levy as a way to raise money for local infrastructure; and carefully consider the impact of schemes in Manchester and Wales.
• The Mayor should work with London Councils to explore further opportunities to scale up net-zero initiatives currently funded by the GLA.
• The Government and the Mayor must commit to working together, and with stakeholders, to develop a clear, long-term investment strategy for London.

Leonie Cooper AM, former Chair of the GLA Oversight Committee, said:

“Ensuring London continues to prosper is an absolute priority for all of us at the London Assembly.

“The London Assembly Devolution Working Group was set up 10 years ago to look into how devolution could benefit London.

“The GLA Oversight Committee’s investigation found there are a number of areas where devolution could help London thrive now and in the future.

“Our report outlines 21 recommendations for the Mayor and regional and central governments to consider, which we firmly believe will allow further economic growth in the capital.

“Devolving greater powers to the Mayor in regards to business rates, to a similar level of the devolved administrations in Wales and Scotland, would enable greater investment in London.

“I urge the Mayor and government to seriously consider our recommendations so that London can take advantage of the opportunities that could become available through devolution.”