The Mayor's role in economic development

This report urges the Mayor to set out how he will continue to deliver economic development in the capital despite changes to the funding and powers he has at his disposal.

‘The Mayor’s role in economic development’, by our Economy, Culture and Sport Committee, calls on the Mayor to publish detailed plans that reflect developments since the publication of his Economic Development Strategy in May last year, including:

• Central Government funding for Greater London Authority and London Development Agency economic development projects has been reduced by more than 85 per cent for 2012/13 compared to 2009/10 as part of the Comprehensive Spending Review.
• The Mayor is looking for other sources of funding. Business rates from London’s first Enterprise Zone, at the Royal Docks, will provide a source of funding for the new Local Enterprise Partnership from 2013. The GLA also plans to borrow £110m over four years for regeneration projects.
• While the Mayor has gained important new powers over housing and regeneration, the centralisation of some business support and skills funding means he has lost some influence in these areas.

The report recommends that the Mayor:

• Publish a detailed implementation plan for delivering economic development which reflects recent changes to his powers and available funding by January 2012.
• Clarify how Business Rates revenue from Enterprise Zones will be spent to help avoid any potential conflict between the Mayor and London boroughs over money that was raised in one part of London being spent elsewhere in London.
• Develop a strategy in advance of the next Comprehensive Spending Review, including his policy on powers and funding for skills and business support, by January 2012.

Also see the Committee's correspondence relating to the impact of the Comprehensive Spending Review on economic development in London.