Labour has accused Boris Johnson of failing to secure the funding needed to tackle London’s housing shortage.
Earlier this week City Hall announced the Mayor had secured a “£1 billion a year affordable homes package” which is “worth over £4 billion for the capital”.
On Thursday Mayor Johnson described the funding agreement with Ministers as “a really good deal” which he said would “deliver high quality, affordable housing for around a quarter of a million Londoners.”
However briefing notes accompanying the press release reveal the settlement includes only £627m in new money. Labour says this represents “a cut to London of 87% compared with the previous funding round.”
Nicky Gavron, Deputy Mayor of London under Ken Livingstone, also says City Hall’s claim of £2.5bn “private investment” is in fact “borrowing by housing associations”, a funding model she describes as “not sustainable.”