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Budget 2015: Boris Johnson says spending plans will bring London more financial independence

 
Budget backing: Boris Johnson said George Osborne's plans were good for London
Pippa Crerar|City Hall Editor
19 March 2015

Boris Johnson today predicted that the Budget would mean more financial independence for London, saying the “dam is now broken” over fiscal devolution.

Setting out his vision for “a truly national recovery”, George Osborne yesterday announced that four regions, including Manchester, would be allowed to keep 100 per cent of growth in local business rates in a trial that will start next month. But Mr Johnson denied he was “remotely jealous or worried” that London may have been overlooked in favour of the North.

The Mayor said there was “significant and irreversible” progress on devolution across the country and that it was only a matter of time before London got to keep all the growth from its own business rates, potentially worth billions of pounds a year.

“London has already got more substantial devolution than many other places in England, so we’re not remotely worried or jealous or anything like that,” he said. “It is fantastic that the dam has now been broken on fiscal devolution. You’ll start to see all the great conurbations of England moving in step. It’s not about regions getting more power, it’s about getting better services more cheaply and in a way that responds to the needs of local people.”

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Mr Johnson said he was relaxed about the pace of economic growth in the north of England. “It’s fair to say that for many years the North has borne a disproportionate share of the country’s economic pain. It’s great that the recovery is happening faster there,” he said.

“London has been relatively sheltered from the downturn, though it remains extra strong. I don’t view it in that zero-sum way, I think the success of the North is good for London.”

The Mayor added that he was “very keen” for the capital to follow Manchester in getting powers over the NHS, and revealed that London town halls and the GLA were meeting with NHS England boss Simon Stevens to discuss the issue. “We need devolution of healthcare to address things like waiting lists, bad results for oncology, unevenness in the service,” he said. However, he admitted that there was some anxiety over the impact at borough level.

Mr Johnson confirmed that he had started lobbying the Chancellor for more powers over health. “London’s health economy is massively bigger than Manchester’s, it’s a different beast. But there is huge scope for improvement and efficiency,” he said.

Mr Johnson admitted Britain had “long-term problems” with productivity. “It’s not as high as it should be. We must be totally honest about that,” he said, adding that Mr Osborne “totally understands” the challenge. “We can tackle those problems,” he said.