Nothing in Spending Review that helped London 'in any meaningful way', says Sadiq Khan

London Mayor, Sadiq Khan

Sadiq Khan said there was nothing in the Government’s Spending Review that “helped London in any meaningful way”.

The Mayor of London said: “Through no fault of their own, Covid has left councils in London, who are on the front line in this pandemic, facing a net funding shortfall of £1.1 billion this year – the Government need to stay true to their word and provide the funding councils need urgently to keep delivering the vital local services we all rely upon.

“To get our economy going again over the coming weeks it will also be crucial that the Government now work with businesses and boroughs to rapidly roll out mass testing and vaccination programmes within the working-age population.

“If the Government continues with its approach of starving the capital of investment it will do nothing more than hamper our recovery from Covid – both in London and across the UK. It is vital that London is now able to get its fair share of funding both from the Shared Prosperity Fund and the new Levelling Up Fund announced today.

“This Government should learn from mistakes of the last decade – austerity and choking off growth to pay down debt doesn’t work and damages lives.”

Chancellor Rishi Sunak revealed the eye-watering cost of fighting the coronavirus pandemic, with UK borrowing set to hit almost £400 billion, the economy expected to contract by 11% and unemployment predicted to rise to 7.5%.

The chancellor, announcing his Spending Review, said Britain's "economic emergency has only just begun" and the damage to the economy caused by the Covid-19 pandemic is likely to be "lasting".

The Office for Budget Responsibility estimates that £20-30 billion would need to be made up in either spending cuts or tax rises in order to balance the books and stop debt from rising by the end of this Parliament.