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Property taxes could pay for Crossrail 2, claims Boris Johnson

Boris Johnson appeared today to abandon his tussle with George Osborne to take control of all property taxes in London.

Boris Johnson at Downing Street Credit: PA

The proposal to transfer further tax raising powers to City Hall was put forward by the mayor's London Finance Commission in 2013.

But in an interview with ITV News Johnson admitted the Treasury was unlikely to hand over the proceeds of Stamp Duty and business rates.

Credit: PA

Instead, the mayor thinks the Chancellor will allow City Hall to levy taxes for special projects like Crossrail 2.

The £25bn high speed commuter line would link Hertfordshire and Surrey through a new tunnel from Tottenham Hale to Wimbledon.

I don't think the Treasury are going to want to say okay London, you can have the whole of Stamp Duty land tax because in the end that's a huge slug of money.

London is the powerhouse, they'd be losing colossal amount of discretionary power to the city. The way forward is to look at fiscal devolution for particular projects.

The way to do it would be Crossrail 2, we should be financing that out of the uplift that is going to come from stamp duty, business rates, all the taxes that will be yielded by the economic growth and development.

– Boris Johnson, Mayor of London