Commenting on the Chancellor’s announcement of a new ‘roadmap’ for fiscal devolution, our Chief Executive, Antonia Jennings, said:

“The Chancellor’s pledge to publish a ‘roadmap’ for fiscal devolution could be one of the most significant policy announcements for London in decades. But the full impact will only be felt if London is part of the deal. Sidestep the capital, as has been done before, and this becomes a disappointingly hollow promise.  

We hope to see this commitment become the most substantial package for decentralisation of power this country has seen – with London playing its critical part. London’s leaders must be empowered to deliver for Londoners and ensure the benefits of growth are felt across the city.”  

“The UK is one of the most centralised countries in the world. Less than £1 in every £10 Londoners contribute in taxes stays in London. In comparison, New York’s Mayor keeps $5 in every $10 raised locally. 

This centralised model is failing. London’s Mayor and councils are expected to fix job shortages, crumbling infrastructure, and an out-of-control housing crisis – but they’re denied the resources and powers to deliver real change. Instead, thanks to more than a decade of central government cuts, many of our councils are on the brink of bankruptcy. Nine London boroughs currently require emergency funding.  

If local leaders could retain more of their tax revenues – especially income tax – the incentives shift overnight. Councils would be empowered and incentivised to invest in job creation, building homes, and improving infrastructure, with the returns invested locally.  

Academic evidence from the OECD and London‑focused economic modelling shows that greater fiscal devolution not only boosts local growth but increases returns to central government. If London had enjoyed the same level of fiscal devolution as peer OECD cities, it would have generated an additional £34–£38 billion over a decade – driving substantially higher tax receipts back to the Treasury.  

As well as boosting the UK economy as a whole, for Londoners this would mean more homes, cleaner streets, better public services and thriving high streets.  

Centre for London has long called for more powers to be transferred to London to match global peers like Paris and New York. Yesterday’s announcement could be the first meaningful step towards this. But the roadmap must be bold. It must be comprehensive. It must move quickly from promise to delivery. And, for London’s nine million residents and the health of the national economy, it must include the capital.  

This must be real devolution, not more delegation. To be meaningful, it must give London control not only over where revenues are retained, but also a say over tax rates and how revenues are spent. London is the engine of the national economy. It is also where many of our greatest challenges are most acute, from housing to unemployment.  

With local and mayoral elections on the horizon for London, national government must give the city the financial power it needs to be truly deliver, not just for Londoners but for the country.”