Key facts
- Khan is in talks with the government about a Business Rate Retention Zone to fund Stratford International Station.
- BusinessLDN proposed empowering city-regions like London to borrow against future revenue streams.
- Healey is facing calls not to target banks with a 2 billion pound-a-year tax rise.
London Mayor Sadiq Khan has appealed to the city's major banks to continue their investments in the UK, as the government is expected to introduce a tax increase targeting the financial sector. The call comes as business leaders are also pushing Chancellor John Healey to grant Khan enhanced financial powers to fund crucial transport infrastructure projects in the capital. These reforms could potentially finance initiatives like the Bakerloo line extension and the West London Orbital, which are projected to create over 20,000 jobs and facilitate the construction of 36,000 new homes. BusinessLDN, a group representing over 170 major London employers, has proposed that city-regions with a strong track record, such as London, should be granted the authority to borrow against future revenue streams without needing individual Treasury approval. This, they argue, would stimulate investment in growth-driving infrastructure. Healey is reportedly considering a 2 billion pound annual tax on banks amidst rising inflation and pressure to alleviate the cost of living crisis for households.