With Sadiq Khan in office, could a London devolution deal be on the cards?
Author: Jack Airey |
Research Fellow, Jack Airey, considers whether fresh leadership at City Hall might catalyse the establishment of a more powerful mayoralty.
The former Mayor of London Boris Johnson was a devolution enthusiast, consistently making the case for a wider suite of powers for both himself and London’s boroughs. Fiscal devolution, in particular, was something he strongly campaigned for. He set up the London Finance Commission in 2012 and pointed towards fiscal reform as the primary issue that he would have pursued in another term.
Despite this support, while other English cities – and indeed British nations – built up a head of devolutionary steam over the past few years, London arguably stagnated. The capital will play host to five healthcare transformation pilots and the Greater London Authority will move quicker towards full business rates retention than others. But in comparison to the ‘Northern Powerhouse’ cities – notably Greater Manchester – the capital has lagged behind.
A devolutionary impasse
London, it should be said, started from a much higher power base than other places with newfound authority. Moreover the model favoured by Government for which to devolve – combined authorities – is illegal to establish in the city (though this hasn’t stopped some council leaders exploring this option). And that the former Mayor’s apparent leadership rival has had a firm hand on the tiller may have made negotiations trickier.
But at a time when London is often accused of failing to face up to the challenges that its prosperity brings, this impasse is a problem; for neither the Mayor nor the boroughs have the tools they need to guide their city as best they can through its success. Further powers over skills, employment support and planning – staples of the devolution deal – could improve many Londoners’ lives.
New Mayor, new focus?
With the energy of fresh leadership at City Hall, then, might Sadiq Khan succeed where Boris did not? He’s certainly a true believer. Before, during and after his mayoral campaign, Khan made a strong case for a mayoralty that learns from and looks closer in size to its more powerful equivalents in places like New York and Chicago.
Moreover the new mayor has a strong mandate to implement a wide programme of reform; and will be working in tandem with London boroughs mostly run by Labour politicians. To achieve the former, collaboration with the latter – both in terms of delivery and securing a wider set of powers – could be vital.
It takes two to tango
Arguably more importantly though, the Mayor will also need a productive relationship with central government. Being the first Mayor whose term will be wholly served without their party in power centrally, this could be problematic – and indeed throughout his campaign, Zac Goldsmith intimated that only he could do business with the Government.
However the ‘Devolution Revolution’ so far, featuring a Conservative Chancellor entrusting significant powers with Labour-controlled institutions, belies these claims. With Andrew Adonis, chair of the National Infrastructure Commission and an ally of the Treasury, apparently set to be part of the mayoral team, it seems unlikely that prospective devolution to London would suffer a partisan fate.
Instead, as many have commented, the devolution agenda could be dependent upon the political fortunes of the Chancellor. Will George Osborne dedicate political capital to its expansion when critics are waiting for its foundations to creak? Equally, for a Government that has not only had limited capacity to negotiate multiple deals at the same time, but also difficulty implementing its own policy agenda, will expanding the remit of City Hall be a priority?
As with City Hall’s funding, the fate of any London devolution deal is going to be reliant upon the will of Government. But with his increasingly global profile, influence and enthusiasm for the role, Sadiq Khan could be well-placed to start loosening the dependence of his new office on his old workplace up the river.