Overview

• Authored by Labour Together and the YIMBY Alliance, the London Unchained report calls for mayoral powers to levy payroll and tourist taxes, introduce a property-related charge, loosen council tax rules for infrastructure, and create development corporations.
• The package is proposed on the condition that City Hall would forgo appeals to the Treasury for project funding once new revenue tools are in place.
• Paris is cited as the model, raising about €7 billion a year from a transport payroll levy of up to 3% on wages and charging tourists up to €15 per night, with full control over parking revenue.
• A spokesperson for the mayor welcomed further devolution under the Devolution Bill and said City Hall will keep working with government, as sources indicate exploratory work on a local payroll tax, a London-wide property tax, and a tourist levy.
• The report highlights funding gaps on projects such as the roughly £13 billion Bakerloo Line extension and a proposed DLR link to Thamesmead, noting London previously patched together Elizabeth Line money from business rates and developer contributions.