Sadiq Khan clashes with Rachel Reeves in row over spending review cash for London

10 June 2025, 09:21 | Updated: 10 June 2025, 10:32

Concerns grow that London could miss out on crucial funds until 2030 in Chancellor's spending review

Sadiq Khan has taken aim at chancellor Rachel Reeves in a row over funding for key transport projects for the London ahead of tomorrow’ spending review.

The mayor of London is said to be furious at the chancellor over a lack of funding for the capital.

Sir Sadiq is concerned at the lack of spending on policing in the capital, as well as requests for backing for major transport infrastructure.

A city hall source said it would “unacceptable if there are no major infrastructure projects for London announced in the spending review and the Met doesn’t get the funding it needs.

“Over the past nine years as mayor, Sadiq has fought to deliver for London – in the best interests of Londoners and the whole country,” the source added.

“We know that when London does well it means the whole country does well. We must not return to the damaging, anti-London approach of the last government.”

A report released today revealed that Londoners net the Treasury £5,000 per head. According to an analysis by the House of Commons Library, Londoners make a net contribution of £4,919 per person once tax and public spending in the capital are taken into account.

For the South East, the figure was £1,687. All other regions were in negative figures.

There are growing concerns that London could miss out on funding for crucial projects up until 2030.

The transport projects for London he wants to fund include the Bakerloo line extension, the DLR extension to Thamesmead and the West London Orbital rail link between Hounslow and Hendon.

Sadiq Khan is also understood to have asked for powers to introduce a tourist levy in London, which has been rebuffed.

A Treasury spokesperson said: “We know the success of the London transport network is critical for both the capital and the UK’s economy, which is why during the Budget the Chancellor announced TfL would receive nearly £500 million in additional funding.

“This week’s Spending Review will deliver economic growth for London and all parts of the country, driven by investment and focused on the priorities of working people, putting more money in their pockets.”

The Met police commissioner, Sir Mark Rowley, has already written to the chancellor warning about the effects on crime in the capital if there is no serious increase in policing budgets.

He wrote a letter alongside Gavin Stephens, the head of the National Police Chiefs’ Council, and Graeme Biggar, the head of the National Crime Agency, to warn the Prime Minister of “stark choices about which crimes we no longer prioritise” if their funding plea is ignored.

After a speech in Manchester Rachel Reeves said: “We will be increasing spending on police in the Spending Review next week.”