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City Hall taskforce to consider infrastructure funding in new devolution deal
THE BUDGET: A City Hall taskforce will consider a new approach to funding infrastructure as it receives a package of further devolution measures from central government.
In today’s Budget, Philip Hammond announced he had reached a deal with Sadiq Khan, the mayor of London, on further devolution.
The Budget documents, released after Mr Hammond’s speech, revealed this will involve “piloting a new approach to funding infrastructure”.
It said the government has agreed to establish a joint taskforce bringing together the Greater London Authority, Transport for London, London Councils, HM Treasury, Department for Transport (DfT) and Department for Communities and Local Government (DCLG) to explore the options for major infrastructure projects in London.
The option under consideration will be a pilot of a Development Rights Auction Model (DRAM), which was recommended by TfL in a report last month.
This sees development rights to land auctioned with development taxes, including Community Infrastructure and Section 106 waived.
The government will also agree a second memorandum with London over the funding of health and social care.
Claire Kober, chair of London Councils, said: “This Memorandum of Understanding is a clear sign of confidence in London local government to deliver real improvements in public services.
Mr Hammond said the government will publish its strategy for devolution to the Midlands tomorrow.
