Mayor of London’s Autumn Statement letter to Jeremy Hunt

London's public transport network is a source of jobs, growth, and investment, not just in London but across the UK. In the last year alone, TfL’s investment in the UK supply chain was worth £5.9 billion in Gross Value Added to the UK economy and supported more than 100,000 jobs.

With the current funding settlement due to end in March 2024, TfL must receive a long-term capital funding deal, as many other cities around the country now have. TfL is on track to achieve operational financial sustainability during 2023/24, but needs £569m in capital support for 2024/25 to support critical network upgrades and investment in critical road assets. Failure to secure this funding would put vital upgrades at risk and be detrimental to long-term infrastructure investment in the capital’s transport network, with consequential negative impacts on the wider UK economy.

The Government’s lack of ambition on HS2 (High Speed 2) is both frustrating and disappointing. The cancellation of the line between Birmingham and Manchester runs counter to the Government’s aim of levelling up the country. The Government can go some way to mitigating the damage done by guaranteeing the future of the Euston terminus of HS2 and committing to building a station which would allow HS2 to be extended beyond Birmingham at a future date. Ministers must urgently provide a clear timeline for finalising private sector funding to ensure successful delivery of the project, and should the Government fail to secure this funding, it must commit to acting as a “funder of last resort” to prevent further delay. In the meantime, recognising that Old Oak Common will now be the terminus for HS2 for at least a decade, the Government should confirm funding for additional Elizabeth line trains to ensure customers can travel into central London unobstructed.

I am determined for London to lead the way in delivering on the UK’s commitment to achieving net zero and that is why I have set London a target to be net zero carbon by 2030. I was therefore extremely disheartened by the Prime Minister’s recent announcements which drastically watered down many of the UK Government’s long- held commitments.

The Government should reconsider these proposals and should start by reinstating the phasing out of petrol and diesel cars by 2030. This would not only provide the vehicle sector with much needed clarity, but help bring us closer to net zero, while sustaining and creating green jobs.

Additional support is needed for people and businesses to upgrade and insulate their homes and buildings. This will not only help us on the path to net zero but will also reduce energy costs on a permanent basis whilst also improving air quality.

If the Government continues to delay in taking the tough decisions required to tackle the climate emergency, then I ask that you give me the necessary powers and relevant funding so that - in partnership with London’s local authorities - I can take action now.

The housing crisis is, in part, an affordability crisis. It is rooted in decades of failure but has been exacerbated by the Government’s inaction to fund social and other affordable housing across the country. The reverberations from last year’s disastrous mini-budget - which saw homeowners facing hugely inflated monthly mortgage payments and private renters soaring costs – will be felt for years to come.

London has completed more homes of all types in recent years than at any time since the 1930s, and last year alone, I achieved record-breaking affordable housing delivery, including the highest level of council homebuilding since the 1970s. However, the Government’s lack of support for affordable housing puts continued progress at risk.

We now need to see a massive uplift in Government support for affordable housing supply in London – given ever-increasing housing costs in the capital – and I urge the Government to boost investment in affordable housing in London to help us meet the massive demand and support jobs and growth.

Whilst there have been considerable improvements in key crime measures in London over recent years, there no doubt remains significant challenges for policing in London. Working in close collaboration with the Commissioner of the MPS, I am determined to help the Met along the path of far reaching systemic and cultural reform. As Mayor, I will continue to do all I can to keep Londoners safe and tackle the scourge of violent crime, including violence against women and girls. This is why I’ve invested heavily in the police, boosting officer numbers by 1,300 in the wake of Government cuts and am investing record sums in tackling gender-based violence – both by supporting victims and helping to reform male offenders.

With an ambitious New Met for London plan, we need to invest in key areas, including Community Crime-Fighting, Culture Change and Fixing the Foundations. We will do everything we can to become even more efficient, but without further investment, there will be an impact on Londoners.

The Government now needs to step up and provide the Met with the sustainable funding and resources it needs to keep our city safe - that includes addressing historic funding shortfalls and recognising our increasing population and position as the police service of the UK’s capital city. Just to match the per capita funding levels in 2012, a real terms increase of 27% in funding would be needed, which is equivalent to £878m.

Recent protests in London have highlighted the unique additional responsibilities the Met carries, and the extra costs incurred in policing the capital. The Government should finally recognise the impact of these duties on the Met’s resources by fully funding the National and International Capital City Grant by £159 million per year (excluding inflationary uplifts). This funding is in line with the Home Office’s independent review undertaken by Sir Richard Mottram - the findings of which were accepted by the Government.

Too many victims are being failed by the criminal justice system. Many feel they lack support, face agonisingly long waits for court, or simply feel pushed out because the process takes too much of a toll. I ask that the Government urgently provides major investment in the criminal justice system and better support for victims. I am clear that vulnerable people need to feel that the system is working for them and not against them.

A successful capital will always be key to a successful country. The Government needs to recognise this and make long overdue investment in London to ensure it is firing on all cylinders and helping power our national recovery. This in turn will generate prosperity, and speed up growth and job-creation right across the UK.

I look forward to your response.

Yours sincerely,

Sadiq Khan

Mayor of London