London needs more cash, warns mayor

28 Jun 01
London Mayor Ken Livingstone has warned that the capital's social and public infrastructure is falling apart because of a lack of investment by central government.

29 June 2001

According to Livingstone, who launched a campaign this week demanding more funding for the capital, London needs an extra £4bn–£6bn to tackle infrastructure problems such as transport improvements and more affordable homes.

Stating his case in a Greater London Authority report, Investing in London: The case for the capital, published on June 25, Livingstone said that London's share of funding had dropped from 18% to 17.2% in the past five years – a difference of more than £2bn.

'Sustaining London's position as one of the four indisputable world cities requires continued and massive investment,' he said. 'Without more resources to invest in crumbling social and public infrastructure there is a real danger that London will lose its competitive edge.'

According to the report, London contributes more than £20bn to the Exchequer each year, which is distributed to different regions in the UK. Livingstone demanded that the capital retain more of these resources for investment to promote sustainable growth. He added: 'Investment in London is a national priority.'

The Department of Transport, Local Government and the Regions has welcomed the report and is considering its findings.

'The report raises a number of issues and looks at a number of funding areas we need to consider,' a DTLR spokeswoman said.


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