Andy Burnham warned: Slash funding for Tube upgrades and risk losing Labour MPs in London

Business chiefs in London warned Andy Burnham not to cut funding for key Tube and other transport infrastructure projects in the capital if he becomes Prime Minister.

Former Greater Manchester Mayor Mr Burnham is heading for No10, possibly within weeks, after Sir Keir Starmer announced his resignation on Monday.

Labour MPs, though, were split over whether there should be a “coronation” of “King of the North” Mr Burnham as party leader and Prime Minister, or a contest in which he would have to lay out a platform for government.

Mr Burnham is currently set to gain the keys to No10 with scant details about many key policy areas, leaving people in London and elsewhere scrambling to try to work out what a Burnham government would mean for them.

However, the former Cabinet minister, who has faced accusations of being anti-London, is expected to channel billions more in public funding for projects in England’s regions.

Amid concerns that this could hit funding for London, John Dickie, Chief Executive at BusinessLDN, told Evening Standard: “Andy Burnham was Chief Secretary to the Treasury when Crossrail was green lit, so knows well how investment in infrastructure can boost jobs and growth around the country.”

Mr Dickie added: “The Government has already made good progress in getting behind some major London projects, including backing expansion at Heathrow and Gatwick, and providing funding for the Docklands Light Railway extension to Thamesmead and HS2 to Euston.

“We need to see that momentum continue under a new Prime Minister with progress on other important projects including the Bakerloo line extension, the West London Orbital and, in time, Crossrail 2, all of which will support supply chains across the UK.”

Within hours of Sir Keir’s resignation statement, London Mayor Sir Sadiq Khan issued a warning to Mr Burnham not to take the axe to funding for the capital.

Peter Kellner, former president of polling company YouGov, said: "Andy Burnham will be taking a risky political gamble if he deprives London of infrastructure investment to spend billions more in the regions.

"London and other cities are areas where Labour still retains support.

"If Londoners feel that funding is being unfairly diverted away from the city, Labour MPs will find it harder to keep their seats."

Labour suffered heavy losses at the May local elections in London when Zack Polanski’s Green Party won control of a string of boroughs.

One policy which Mr Burnham might pursue is replacing council tax and stamp duty with a land value levy, having previously voiced support for the idea.

But it could mean hundreds of thousands of Londoners seeing their property tax bill go up by £1,000.

Mr Burnham has also voiced scepticism about a third runway at Heathrow, arguing it would “suck” in vital funding which could be used in the regions.