Areas of City Hall

The Mayor's budget

The annual budget is at the centre of how the Mayor exercises his authority.

Through it, the Mayor ensures there is a sound financial plan to deliver his priorities within the resources that are available to the GLA (Greater London Authority) Group.

What does the budget pay for?

The Mayor sets the budget for the GLA (including the London Assembly) and its five functional bodies (together known as the GLA Group):

These budgets together form a consolidated budget.

Watch: a guide to the Mayor's budget

How is the budget set?

The Mayor’s budget must pass through a number of stages, including scrutiny from the London Assembly, before it can be finalised. To a large extent the process is governed by legislation set out in the Greater London Authority Act.

In broad terms, the process is as follows:

  • the budget setting process begins in the summer when the Mayor publishes (non-statutory) guidance to provide the context and support for the organisations that make up the GLA Group to prepare their budgets for the financial year ahead
  • next, a consultation budget and a draft capital spending plan are published in December
  • after consultation has closed in January, the Mayor publishes a draft consolidated budget
  • a final consolidated budget follows in February. At this stage, the Assembly may amend the budget if a two-thirds majority of its Members vote in favour of a specific amendment proposal
  • the Mayor then publishes his capital spending plan and the final budget for the financial year ahead

Council tax

The budget also determines the level of the GLA ‘precept’.

The precept is the Mayor's part of the council tax, collected by London's boroughs and the Corporation of London. It helps pay for the services provided by the GLA Group and the running of City Hall.

There are two sets of council tax calculations because the Metropolitan Police District does not include the City of London, which has its own police force. The basic amount of council tax payable by taxpayers in the City of London excludes the element for the Metropolitan Police District, whereas the basic amount of council tax payable in the London Boroughs includes the element for the Metropolitan Police District.

The Mayor's budget for 2017 / 2018

 

The Mayor’s Final Budget for 2017 / 2018

The Mayor's Final Budget was published in March 2017. The Mayor's Final Draft Budget was approved without amendment by the London Assembly on 10 February 2017.

The Budget set the Mayor's 2017-18 portion of the council tax (the precept) for a Band D property in the 32 London Boroughs as £280.02.

The precept in the City of London – which has its own police force, was set at £73.89. The council tax precept was approved in Mayoral Decision 2075.

The Budget includes the GLA Group Four Year Efficiency Plan under Section 9 of the document. The Budget should be read alongside the Mayor's Capital Spending Plan, published on 27 February 2017.

 

The Mayor’s Capital Spending Plan for 2017 / 2018

The Mayor published his capital spending plan for the GLA Group on 27 February 2017.

 

Final Draft Consolidated Budget

The Mayor published his final draft consolidated budget for 2017-18 on 10 February 2017, in three parts:

These will be considered by the London Assembly at their plenary meeting on Monday 20th February 2017.

 

Draft Consolidated Budget

On 17 January 2017 the Mayor published his draft consolidated budget for 2017-18, in three parts:

These will be considered by the London Assembly at their Plenary meeting on Wednesday, 25 January 2017.

 

Consultation Budget and draft Capital Spending Plan for 2017-18 (December 2016)

The Mayor's Budget (below) is now open for consultation until Thursday, 12 January 2017.

Please email your responses to: [email protected]
 

Budget guidance for 2017-18

Each year the Mayor publishes a Budget Guidance document to aid the GLA and GLA group in preparing their budgets for the next financial year. The new Mayor Sadiq Khan published his ‘Budget Guidance for 2017-18’ on 1 July 2016.

The Mayor's budget for 2016 / 2017

The Final Budget for 2016-17 was published in March 2016, and was approved by previous Mayor, Boris Johnson.

The Mayor's Final Draft Budget was approved without amendment by the London Assembly on 22 February 2016.

The budget set the Mayor's 2016-17 portion of the council tax (the precept) for a Band D property in the 32 London Boroughs as £276.00, a £19.00 (6.4%) reduction compared to 2015-16.

The precept in the City of London – which has its own police force, was set at £73.89, a reduction of £12.24 (14.2%) compared 2015-16. The council tax precept was approved in 
Mayoral Decision 1611.

The Budget should be read alongside the Mayor's Capital Spending Plan, published in February 2016.

Final draft consolidated budget for 2016-17

The Mayor published his final draft consolidated budget for 2016-17 on 12 February 2016. It is in three parts.

Draft consolidated budget for 2016-17

The Mayor published his draft consolidated budget for 2016-17 on 19 January 2016. It is in three parts:

Consultation on Mayor’s budget for 2016-17 (December 2015)

The Mayor published his 2016-17 draft consolidated budget for consultation on Monday 21 December 2015. The consultation closed on Tuesday 12 January 2016.

View the Mayor's associated press release.

Budget guidance for 2016-17

Each year the Mayor publishes a Budget Guidance document to aid the GLA and GLA group in preparing their budgets for the next financial year. His budget guidance for 2016-17 was published on 28 July 2015.

Supplementary 2016-17 Mayor's budget guidance (October 2015)

Additional supplementary Budget guidance was published on 20 October 2015.

Budgets from previous years

The budgets set out for 2009-10 to 2016-17 were approved by the previous Mayor, Boris Johnson. The budget for 2008-09 was approved by the previous Mayor, Ken Livingstone.

2015/16

The Final Budget for 2015-16 was published in March 2015.

The Mayor's Final Draft Budget had been approved on 23 February, without amendment by the London Assembly.

The budget set the the Mayor's 2015-16 portion of the council tax (the precept) for a Band D property in the 32 London Boroughs as £295, a £4 (1.3%) reduction from 2014-15. The precept in the City of London was set at £86.13.

The precept is lower in the City of London because it has its own police force. The council tax precept was approved by Mayoral Decision 1451.

The Budget should be read alongside the Mayor's Capital Spending Plan, published in February 2015.

 

Background documents

Four Year Efficiency Plan

In March 2016 the Secretary of State for Communities and Local Government invited local authorities to publish locally owned and locally driven four year efficiency plans.

The commitment from the Secretary of State was that local authorities submitting such plans would receive the minimum four year funding allocations set out in the Local Government Finance Settlement published in February 2016, including the top-up and tariff payments relating to the current business rates retention system.

The document below sets out the GLA Group Efficiency Plans for the four year period 2016-17 to 2019-20. The individual efficiency plans for the GLA (including the London Legacy Development Corporation, the Mayor’s Office for Policing and Crime, the London Fire and Emergency Planning Authority, and Transport for London) can be found under Appendices B to E of this document.