Mayor Boris Johnson has renewed calls for a long-term funding settlement to enable him to deliver much needed new homes.
The Mayor wants UK Government ministers to implement recommendations made by the London Finance Commission which would allow him and local councils to retain property taxes collected in the capital.
Although the retained cash would be offset by reductions in Government grants, security of funding would allow City Hall to negotiate longer-term agreements with developers and other suppliers.
‘Bulk buy’ deals would allow the Mayor to reduce costs, thereby securing better value than is possible under current funding arrangements, much of which rely on annual grants from UK ministers which are either time limited or carry restrictions on their use.
City Hall says London’s population growth means an additional 40,000 homes will need to be built in London each year by the 2030s to keep up with demand.
Mr Johnson said: ‘With fair and continuous funding from the government, based on the vast sums raised through stamp duty on London’s higher value homes, we can meet this need – at no cost to the Treasury – and go on to maintain London’s position as the greatest city on earth.”
The Mayor’s comments came as he announced a £138 million fund to enable 57 housing providers to build 6,000 new affordable homes.