Raising the capital
The London Finance Commission’s report argues that funding arrangements in London should allow London government to make additional self-determined investments in its own infrastructure both to cater for the growth already forecast for its population and economy, and to promote additional economic growth.
Relaxing restrictions on borrowing for capital investment while retaining prudential rules and simultaneously devolving the full suite of property tax revenue streams would afford London government greater autonomy to invest in the capital.
Such reforms would also increase London government’s accountability to residents and businesses. Change would be achieved without affecting the financial settlements of other parts of the country.