Mayor’s allies blast ‘unacceptable’ snub as Chancellor refuses tourist tax AND ignores Met Police funding plea in bitter Labour civil war
Sadiq Khan has launched an extraordinary attack on Rachel Reeves after the Chancellor refused to fund a SINGLE one of London’s major transport projects – sparking the biggest Labour-on-Labour clash since the party took power.
The London Mayor is said to be “furious” after being told at a meeting on Friday that he will get NONE of his key requests in Wednesday’s spending review, including his dream of extending the Docklands Light Railway to Thamesmead and the Bakerloo line to Lewisham.
In a rare “red on red” assault, sources close to Khan have accused the Chancellor of pursuing a “damaging, anti-London approach” that threatens to strangle the capital’s growth and harm the entire country’s economy.
The explosive row comes as Metropolitan Police Commissioner Sir Mark Rowley also warned of “stark choices about which crimes we no longer prioritise” without proper funding – adding to the Mayor’s fury over what City Hall sees as a deliberate snub to the capital.
TRANSPORT DREAMS CRUSHED
Khan’s transport wishlist has been comprehensively rejected by the Treasury:
• DLR extension to Thamesmead – REJECTED • Bakerloo line extension to Lewisham – REJECTED (cost: £5.2bn-£8.7bn) • West London Orbital rail link – REJECTED • Tourist levy powers – REFUSED
Bloomberg reports that at Friday’s meeting between Khan and senior Treasury ministers, the Mayor was bluntly informed he would get “none of his asks” – with conversations at adviser level over the weekend failing to shift the Treasury’s position.
A City Hall source didn’t hold back their fury: “Sadiq will always stand up for London and has been clear it would be unacceptable if there are no major infrastructure projects for London announced in the Spending Review and the Met doesn’t get the funding it needs.
‘ANTI-LONDON’ BOMBSHELL
In an unprecedented attack on a Labour Chancellor by a Labour Mayor, Khan’s allies warned against returning to what they called the “damaging, anti-London approach of the last government.
Over the past nine years as mayor, Sadiq has fought to deliver for London – in the best interests of Londoners and the whole country,” a source close to the mayor said.
We know that when London does well it means the whole country does well, and that it will simply not be possible to achieve national growth ambitions without the right investment and growth in our capital.
We must not return to the damaging, anti-London approach of the last government, which would not only harm London’s vital public services, but jobs and growth across the country.
The inflammatory language marks a dramatic escalation in tensions between City Hall and the Treasury, with Khan’s team effectively accusing Reeves of betraying the capital that generates a quarter of Britain’s economic output.
POLICE FUNDING CRISIS
Adding to Khan’s rage, Metropolitan Police chief Sir Mark Rowley has gone over the Chancellor’s head with a desperate plea to Prime Minister Keir Starmer for more funding.
In a letter co-signed with other police chiefs, Rowley warned of having to make “stark choices about which crimes we no longer prioritise” if their funding plea is ignored.
The police leaders also highlighted risks of a “retrenchment to what we saw under austerity” if the Treasury doesn’t budge on its police spending plans.
Khan shares these concerns, with City Hall sources saying it would be “unacceptable” if the Met doesn’t get the funding it needs to keep Londoners safe.
TOURIST TAX SNUB
In another blow to the Mayor, his request for powers to introduce a tourist levy – similar to schemes in Manchester and cities across Europe – has been flatly refused.
The changes regarding the planned tax would likely take effect during the next Budget rather than in a spending review, but the rejection adds to Khan’s growing list of grievances.
Manchester’s “City Visitor Charge” raised £2.8 million in its first year, with hotels encouraged to add the levy to guests’ bills. Khan had hoped similar powers would help fund London’s stretched services.
NORTH GETS BILLIONS
While London faces a funding freeze, Reeves has already unveiled a staggering £15.6 billion package for transport projects outside the capital – what she called the “biggest ever investment” by a British government in regional transport links.
The cash bonanza includes:
- Extended metros in Tyne and Wear, Greater Manchester and West Midlands
- Renewed tram network in South Yorkshire
- New mass transit system in West Yorkshire
- £800 million for the West of England
Research from the Institute for Public Policy Research reveals the stark reality: London received 2.43 times as much public transport spending per capita than the North over the past decade – a disparity Reeves appears determined to reverse, whatever the cost to the capital.
HEATHROW HYPOCRISY
Adding insult to injury, the Government has granted significant investment to expand Gatwick, Luton and City airports and pledged support for a third runway at Heathrow – despite Khan’s fierce opposition to the plans.
The Mayor has vowed to use “whatever means necessary” to block the Heathrow expansion, setting up another confrontation with the Chancellor who dismissed his concerns, saying: “I’ve got huge respect for Sadiq, but on this issue, I believe sustainable aviation and economic growth go hand-in-hand.
‘LEVELLING DOWN LONDON’
Khan’s allies are adamant that supporting the regions shouldn’t mean punishing the capital that contributes £38.7 billion net to the Treasury each year.
It’s absolutely crucial at this time of global uncertainty that we send the right message to attract investment, which helps to bring prosperity to the whole of the UK,” a source said.
“It’s also important to recognise that parts of London still have some of the highest levels of poverty anywhere in the UK. The way to level up other regions is not to level down London.”
LABOUR CIVIL WAR
The public spat represents the most serious breach in Labour unity since the party took power, with Khan effectively accusing his own party’s Chancellor of betraying London.
City Hall insiders say the Mayor had already scaled back his ambitions, moving away from seeking straight cash injections to requesting permission to borrow money – similar to how the Northern line extension to Battersea was funded.
Even this compromise approach appears to have been rejected by a Treasury determined to redirect spending away from the capital.
As one City Hall source put it starkly: “When London does well, the whole country does well. Reeves seems to have forgotten that basic economic fact.”
With the spending review just days away, the stage is set for a bitter showdown between Labour’s most powerful Mayor and its iron-fisted Chancellor – a battle that could define the party’s approach to governing for years to come.
Image credit:
“Official portrait of Nigel Farage MP (crop 2)” by Laurie Noble, licensed under CC BY 3.0 – Creative Commons Attribution 3.0 Unported
