Prime Minister Andy Burnham has set out his vision for London after Sadiq Khan was handed sweeping new powers, vowing to unleash the capital's "untapped potential" with better transport links, more homes and investment.
Writing in The Standard, Mr Burnham highlighted the major new powers on income tax and business rates given to the Mayor of London in the Budget on Wednesday.
First Step Towards a London Deal
"This is the first step towards developing a London Deal with Sadiq and the Greater London Authority that gives the capital more of the powers and tools it needs to unlock growth," he said.
"There's a misconception that giving more power to the rest of country somehow means London getting less. It's something I hear all the time. But it couldn't be further from the truth," he added, rejecting accusations that he is anti-London.
He emphasised that he wanted London to be "pushing even further" as it drives Britain's economy. "Because for all London's success, there's still so much untapped potential," he explained.
Stratford International and Transport Plans
The premier hailed Lord Khan's plan to open up Stratford International Station in east London to cross-Channel services. "The transformation since the Olympics has been extraordinary," he said.
"But alongside that success are communities facing some of the deepest deprivation - not just in London, but nationally. There's so much more we could be doing to bring in opportunities and investment to that area, especially through Stratford International, which - despite its name - has never had an international train stop there."
The Government has given support to two Business Rate Retention Zones; one to fund the £20 million plan for the Stratford station, the second to upgrade Euston station, particularly its Tube system.
Budget Measures and Reaction
Chancellor John Healey announced the funding mechanisms in the Budget which also included an extra 3% on the Bank Surcharge for City banks to fund help on energy bills for less well-off households.
Some 20 million households, including two million in London, in council tax bands A-D will get a £100 'Household Energy Payment' paid directly into their bank accounts to help deal with rising energy bills. The scheme will cost £2.6bn.
The threshold for Small Business Rate Relief for retail hospitality and leisure businesses was increased from £12,000 to £18,000. Renters were left facing higher bills as tax on landlords was increased, and standing charges on gas bills will be scrapped from next year.
In a series of interviews on Thursday, Mr Healey denied postponing difficult decisions on the welfare system, insisting the Government is making changes "now". But Tory leader Kemi Badenoch said the country is "drowning in an out-of-control welfare system". The Institute for Fiscal Studies think tank warned the Budget delayed tough decisions.
In the capital, Lord Khan's new tax powers are set to allow City Hall to borrow an estimated £10 billion to press ahead with schemes such as the Bakerloo line extension and the West London Orbital.
"This is just the starting point for developing a growth deal for London," said the Prime Minister, outlining support for struggling households and plans to boost the capital's productivity. "Whether it's housing, skills, supporting businesses, or attracting new investment, I'm absolutely determined to work Sadiq to unlock the potential of every part of this great city. London's success is Britain's success."
