Sadiq Khan has launched a blistering warning to Rachel Reeves ahead of her crucial spending review, accusing the Labour chancellor of planning to shortchange the capital and “deprive London of cash”.
💸 London left out?
The mayor is deeply concerned that London could be left out of major infrastructure investments while billions are allocated to projects elsewhere in the UK. Among his fears: vital extensions to the Docklands Light Railway and the Bakerloo Line, as well as plans to give London the power to introduce a tourist tax and boost funding for the Metropolitan Police.
A source close to Khan didn’t hold back:
“It would be a huge mistake and not consistent with Labour values.”
🧒 Poverty, police, and public transport at risk
Khan’s team say the expected funding snub could derail his efforts to tackle child poverty and undermine growth, not just in London, but across the UK.
cthe source said, warning it would hurt “jobs and growth across the country”.
They added:
“When London does well, the whole country does well.”
And with Reeves already promising major investment in northern transport links and the Sizewell C nuclear plant, Team Khan is demanding answers about why the capital’s projects are being passed over.
🧨 Labour tensions bubbling
This row highlights growing internal friction within Labour just as Reeves prepares to lay out her vision for economic recovery. Khan’s team say cutting growth funds and neglecting London infrastructure will backfire – economically and politically.
“They say they want economic growth, but their actions will damage it,” one insider warned.
London is also set to lose access to central funds that support high streets, small businesses, job schemes, and exports – a move Khan’s office described as “incredibly short-sighted”.
🚨 ‘Level up’ shouldn’t mean ‘level down London’
In a sharp dig at Reeves’ economic strategy, Khan’s team said Labour must not repeat the Conservatives’ “anti-London” stance under the guise of levelling up.
“The way to level up is not to level down London,” the source said. “This country works best when we work together – when we promote growth and tackle poverty together.”
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