London Left in the Lurch: A Spending Review That Misses the Mark
June 11, 2025, 4:20 pm
Location: United Kingdom, England, City of London
Employees: 10001+
Founded date: 2000
The recent Spending Review, led by Chancellor Rachel Reeves, has sparked a wave of discontent in London. The capital, often seen as the beating heart of the UK economy, feels short-changed. BusinessLDN, the city's business advocacy group, has voiced its concerns. The Chancellor's promises of infrastructure and skills investment have been met with skepticism. The numbers may look good on paper, but the reality is stark.
Reeves announced a four-year funding settlement for Transport for London (TfL). The £3 bus cap will remain until 2027, and £1.2 billion is earmarked for training young people. However, the capital's leaders argue that this is not enough. John Dickie, chief executive of BusinessLDN, emphasized that London is a vital engine for the UK economy. It generates a quarter of the nation's wealth. Yet, the Chancellor's focus seems to drift toward the North and Midlands.
The Spending Review unveiled a new local growth fund. This fund promises a ten-year capital settlement for mayoral cities in the North. Local government spending is set to rise by 5.2% to £15.8 billion by 2028/29. But what about London? The capital's infrastructure projects are left hanging. Dickie pointed out the uncertainty surrounding crucial projects like the Docklands Light Railway (DLR) extension to Thamesmead and the Bakerloo line extension. These projects could create jobs and open up new housing sites. Instead, they linger in limbo.
Mayor Sadiq Khan's reaction was swift and critical. He expressed deep concern over the lack of funding for the Metropolitan Police. The police force is already stretched thin. The head of the National Police Chiefs’ Council has warned of tough choices ahead if funding remains inadequate. Khan's disappointment was palpable. He highlighted that without investment, London’s ambitious housing targets could falter. The goal is to build 1.5 million new homes by 2029. Without the necessary infrastructure, this dream may slip away.
The Chancellor's announcements seem to prioritize regions outside London. This has raised eyebrows. Khan pointed out that leveling up other regions should not mean leveling down London. The capital's needs are just as pressing. The mayor vowed to continue fighting for the investment necessary to build a fairer, safer, and greener London.
The Spending Review is a significant milestone. It outlines government spending plans for the next five years. Yet, it feels like a missed opportunity for London. The funding for the police, while showing a slight increase, is overshadowed by cuts to the Home Office budget. The Metropolitan Police chief, Mark Rowley, has been vocal about the need for more resources. He warned that without adequate funding, the government’s crime commitments would be hard to meet. The scars of austerity cuts still linger.
The Chancellor's announcement of a £2 billion boost for TfL is noteworthy. It’s the largest multi-year settlement for London in over a decade. But is it enough? The funding is a drop in the ocean compared to the capital's needs. Khan's call for more infrastructure investment is echoed by many. The DLR extension and Bakerloo line expansion are not just transport projects; they are lifelines for economic growth and housing development.
The Spending Review has left London’s leaders scrambling. They need clarity and commitment from the government. The upcoming ten-year infrastructure strategy must address these gaps. Devolution is also crucial. London must have the tools to contribute fully to the national growth mission. The capital cannot be an afterthought in the government's plans.
As the dust settles on the Spending Review, the message is clear. London is at a crossroads. The city’s potential is immense, but it requires investment and support. The government must recognize that a thriving London benefits the entire country. It’s not just about regional funding; it’s about fostering a balanced growth strategy.
In conclusion, the Spending Review has left London feeling neglected. The capital's leaders are calling for action. They want a commitment to infrastructure, policing, and housing. The future of London hangs in the balance. The government must act decisively. Otherwise, the capital's growth could stall, and with it, the hopes of millions. London deserves better. The time for action is now.
Reeves announced a four-year funding settlement for Transport for London (TfL). The £3 bus cap will remain until 2027, and £1.2 billion is earmarked for training young people. However, the capital's leaders argue that this is not enough. John Dickie, chief executive of BusinessLDN, emphasized that London is a vital engine for the UK economy. It generates a quarter of the nation's wealth. Yet, the Chancellor's focus seems to drift toward the North and Midlands.
The Spending Review unveiled a new local growth fund. This fund promises a ten-year capital settlement for mayoral cities in the North. Local government spending is set to rise by 5.2% to £15.8 billion by 2028/29. But what about London? The capital's infrastructure projects are left hanging. Dickie pointed out the uncertainty surrounding crucial projects like the Docklands Light Railway (DLR) extension to Thamesmead and the Bakerloo line extension. These projects could create jobs and open up new housing sites. Instead, they linger in limbo.
Mayor Sadiq Khan's reaction was swift and critical. He expressed deep concern over the lack of funding for the Metropolitan Police. The police force is already stretched thin. The head of the National Police Chiefs’ Council has warned of tough choices ahead if funding remains inadequate. Khan's disappointment was palpable. He highlighted that without investment, London’s ambitious housing targets could falter. The goal is to build 1.5 million new homes by 2029. Without the necessary infrastructure, this dream may slip away.
The Chancellor's announcements seem to prioritize regions outside London. This has raised eyebrows. Khan pointed out that leveling up other regions should not mean leveling down London. The capital's needs are just as pressing. The mayor vowed to continue fighting for the investment necessary to build a fairer, safer, and greener London.
The Spending Review is a significant milestone. It outlines government spending plans for the next five years. Yet, it feels like a missed opportunity for London. The funding for the police, while showing a slight increase, is overshadowed by cuts to the Home Office budget. The Metropolitan Police chief, Mark Rowley, has been vocal about the need for more resources. He warned that without adequate funding, the government’s crime commitments would be hard to meet. The scars of austerity cuts still linger.
The Chancellor's announcement of a £2 billion boost for TfL is noteworthy. It’s the largest multi-year settlement for London in over a decade. But is it enough? The funding is a drop in the ocean compared to the capital's needs. Khan's call for more infrastructure investment is echoed by many. The DLR extension and Bakerloo line expansion are not just transport projects; they are lifelines for economic growth and housing development.
The Spending Review has left London’s leaders scrambling. They need clarity and commitment from the government. The upcoming ten-year infrastructure strategy must address these gaps. Devolution is also crucial. London must have the tools to contribute fully to the national growth mission. The capital cannot be an afterthought in the government's plans.
As the dust settles on the Spending Review, the message is clear. London is at a crossroads. The city’s potential is immense, but it requires investment and support. The government must recognize that a thriving London benefits the entire country. It’s not just about regional funding; it’s about fostering a balanced growth strategy.
In conclusion, the Spending Review has left London feeling neglected. The capital's leaders are calling for action. They want a commitment to infrastructure, policing, and housing. The future of London hangs in the balance. The government must act decisively. Otherwise, the capital's growth could stall, and with it, the hopes of millions. London deserves better. The time for action is now.