What London Needs From Its Prime Minister
BBC Business reported Sunday that charities, business bodies and policy researchers have set out their top demands for Prime Minister Keir Starmer, urging bolder action on child poverty, tax certainty and fiscal devolution for London.
The BBC Politics London programme spoke to three organisations about what changes would most benefit the capital’s residents and businesses.
Benefit Cap and Housing Remain Urgent Pressure Points
Sophie Livingstone, chief executive of children’s charity Little Village, welcomed Labour’s move to remove the two-child benefit cap. She argued the government must now move faster on related restrictions. Livingstone said the overall benefit cap, which limits total household support, continues to push families into hardship. She also highlighted the local housing allowance as a major source of stress. Overcrowding remains a serious problem, she said. Families of five are sometimes sharing a single room. Poor housing conditions, including damp and mould, damage children’s health and destroy their belongings.
Small Firms Want Regulatory Certainty Above All
The London Chamber of Commerce, which represents around 12,000 businesses, warned that small firms are struggling under unresolved questions around business rates and taxation. Chief executive Karim Fatehi said the operating environment needs to be straightforward and predictable. He argued that London’s economic health directly determines national prosperity. A thriving capital, in his view, lifts growth across all regions.
London Raises Just 7% of Its Own Budget
Think tank Centre for London called for a substantial transfer of financial powers to the mayor’s office. Chief executive Antonia Jennings pointed to a striking comparison with New York City. She noted that New York’s mayor directly raises roughly 70% of the city’s budget. London’s mayor, by contrast, controls only around 7% of equivalent funds. That gap, Jennings argued, places London at a serious disadvantage against other global cities. She added that London and the wider southeast are the only English regions that consistently contribute more to the Treasury than they receive back. That net contributor status, she said, makes the case for much deeper fiscal devolution London urgently needs.
Background: Devolution Debate Has Deepened Since Pandemic
Pressure for greater London autonomy has grown steadily since the pandemic exposed gaps in local financial flexibility. Successive mayors have sought expanded revenue-raising tools, with limited success. The debate now sits alongside broader discussions about regional inequality across England.
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