Business leaders in London have warned Andy Burnham that slashing funding for Tube upgrades and other transport infrastructure projects in the capital could cost Labour MPs their seats, as the former Greater Manchester Mayor is poised to become Prime Minister following Sir Keir Starmer's resignation.
Burnham on Track for No10
Mr Burnham, who served as Chief Secretary to the Treasury when Crossrail was approved, is expected to channel billions more in public funding to England's regions, raising concerns that London's transport investment could suffer. Labour MPs are divided over whether to coronate the “King of the North” or hold a contest requiring him to set out a governing platform.
John Dickie, Chief Executive at BusinessLDN, told The Standard: “Andy Burnham was Chief Secretary to the Treasury when Crossrail was green lit, so knows well how investment in infrastructure can boost jobs and growth around the country.” He added that the Government has backed major London projects like Heathrow and Gatwick expansions, the Docklands Light Railway extension to Thamesmead, and HS2 to Euston, and urged continued progress on the Bakerloo line extension, West London Orbital, and Crossrail 2.
Political Warning from Pollster
Within hours of Sir Keir's resignation, London Mayor Sir Sadiq Khan warned Mr Burnham not to cut capital investment. Peter Kellner, former president of YouGov, said: “Andy Burnham will be taking a risky political gamble if he deprives London of infrastructure investment to spend billions more in the regions. London and other cities are areas where Labour still retains support. If Londoners feel that funding is being unfairly diverted away from the city, Labour MPs will find it harder to keep their seats.” Labour suffered heavy losses in London's May local elections, with the Green Party winning control of several boroughs.
Policy Proposals and Controversies
One policy Mr Burnham might pursue is replacing council tax and stamp duty with a land value levy, which could raise property tax bills for hundreds of thousands of Londoners by £1,000 a month. He has also voiced scepticism about a third runway at Heathrow, arguing it would “suck” vital funding away from regional projects.
