01 February 2017

Sadiq Khan: London urgently needs a new devolution deal to protect our city's economy from Brexit risks

The London mayor launched the London Economic Action Partnership, a group which development actions would be partially funded by the European Structural and Investment Funds. Khan called on the government to make an urgent decision on how it will replace this investment once the UK has left the EU.

[...] I’m chairing the first meeting of the London Economic Action Partnership (LEAP). This signals an ambitious new approach to support and lead economic growth over the years ahead – and, crucially, to ensure that the opportunities we create are open to all Londoners. With strong representation from across the business community and local government, I believe this group will be a formidable and creative advocate for economic development. [...]

Another key part of LEAP’s important role is overseeing £600m worth of investment from the European Structural and Investment Funds, which goes into skills, employment and enterprise initiatives across our city. Its overriding purpose is to improve London’s competitiveness and it plays a crucial role in creating jobs, backing apprenticeships and supporting business confidence.

Without this funding, many key schemes would simply not be possible. That’s why it’s so concerning that in the aftermath of Brexit the future of this vital investment is now in doubt. So I’m calling on the government to make an urgent decision on how it will replace this investment and ensure the successor funding streams are devolved to London so that we can spend the money where it’s needed – delivering more opportunities for Londoners.

This is crucial because as we work to mitigate against the potential negative impacts of Brexit, these funding streams will form a part of a wider approach to devolution that will be pivotal to London’s industrial strategy and success over the decades ahead. [...]

This needs to change and last year’s Autumn Statement marked a positive and welcome move in the right direction. We secured a number of steps towards the kind of major devolution deal we need – with greater control over housing, skills and back-to-work funding.

But there’s still a long way to go. And I will be continuing to put party politics aside and working with the government to ensure London secures the control we need to protect jobs, growth and investment post-Brexit.

There’s no doubt we face some uncertain economic times ahead following the EU referendum, but I look forward to working with LEAP members – and the capital’s entire business community – to secure future economic growth and ensure London remains the best city in the world to do business for many more decades to come.

Full piece on City AM

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