Boris Johnson wants greater powers for London following Scottish independence referendum

 
More powers for London: Boris at the launch of the .london domain yesterday (Julian Makey/REX)
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Boris Johnson today signalled a major push for London to seize greater power over its own future in the wake of Scotland’s independence referendum.

The Mayor said the capital now had an opportunity to win sweeping new tax powers as the UK worked out a devolution settlement for the English regions.

He highlighted plans already drawn up by London, with England’s other big cities, which would see it control property tax revenues. Mr Johnson told the Standard: “There can be no going back to the hopeless regional English assemblies of the Blair government.

“I am very pleased that the Prime Minister has identified one of the best and most elegant solutions — greater fiscal devolution for the great cities of England, London included. Together with the core cities of England — Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham, Sheffield — we have drawn up detailed proposals on how this would work.”

Last year the independent London Finance Commission published recommendations for devolving funds and powers to the capital’s local government.

It argued that property taxes gathered in London should stay here to provide secure income for improving infrastructure.

As well as providing a direct funding stream, Mr Johnson believes money raised from taxes could also be used as leverage for London to borrow money to fund major projects.

Officials at City Hall point to the Crossrail scheme which took years to finalise as London waited for backing from the Treasury.

Now London wants to build Crossrail 2, which experts say is needed to help the city cope with its soaring population.

The Government signalled this morning that further devolution to cities was on the cards, with Commons Leader William Hague saying: “There may be many more ideas as to how we can do that”.

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London Labour MP Margaret Hodge said earlier this week that the capital needed “to fight its corner” for new powers.

She pointed out that the capital’s population will be twice that of Scotland’s by 2030 and added: “With greater powers over the tax raised from Londoners, and greater authority to act, we will better grow our economic potential and tackle the inequality.”

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