Concern over changes to local government funding

London is the single largest regional contributor to the Exchequer, and one of only two regions that consistently generates a net fiscal surplus.

The London Assembly has today agreed a motion stressing it would be wrong to impose further tax burdens on London’s residents. It also believes it is wrong to view London as a cash cow.

The Assembly has expressed concern over proposed changes to the local government funding formula, which, if enacted, will penalise low-tax London councils such as Wandsworth.

It is calling on the Mayor to stand up for Londoners by publicly opposing the Prime Minister and Chancellor’s proposed tax reforms, and to write to them to that effect.

Alex Wilson AM, who proposed the motion, said:

"The London Assembly has today expressed its concern that the new Prime Minister and Chancellor are looking into tax reforms that will harm Londoners more than anyone else in Britain.

“Recognising that London is already the highest contributor to the public purse by region, the Assembly has passed my motion calling for the Mayor to stand up to Andy Burnham and oppose his tax raid on London."

The full text of the motion is:

“The Assembly notes with concern the recent proposals from the Prime Minister and Chancellor of the Exchequer surrounding tax reform and changes to the local government funding formula.

The Assembly recognises that London is the single largest regional contributor to the Exchequer, and one of only two regions that consistently generates a net fiscal surplus. Therefore, this Assembly believes it wrong to impose further tax burdens on London’s residents. It is wrong to view London as a cash cow.

The Assembly, therefore, formalises its support for the leaders of Kensington and Chelsea, Richmond, and Wandsworth in their collective expression of concern regarding the disproportionate concentration of the proposed ‘Mansion Tax’, noting that an estimated 55% of the total funds raised would be sourced from those boroughs alone.

The Assembly expresses its concern over proposed changes to the local government funding formula, which, if enacted, will penalise low-tax London councils such as Wandsworth.

Therefore, this Assembly calls on the Mayor to stand up for Londoners by publicly opposing The Prime Minister and Chancellor’s proposed tax reforms, and to write to them to that effect.”

The meeting can be viewed via webcast or YouTube.

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