It’s widely acknowledged that London’s mayor, Sadiq Khan, was dissatisfied with the contents—or rather, the lack thereof—of the government’s latest Spending Review.

Khan’s aspirations for funding new transport infrastructure projects were met with silence. The increase in police funding, which falls short of addressing the Metropolitan Police’s significant budget shortfall, provided little reassurance, and funding for local councils was scant.

The government, however, would contend that their priorities included investments in affordable housing, free school meals, and the NHS.

Let’s delve into what the capital received.

**Transport**

Transport for London (TfL) has secured a four-year funding deal worth £2.2 billion.

This is significant because TfL has faced challenges in long-term planning due to uncertainty about government support beyond the current fiscal year.

TfL Commissioner Andy Lord stated that this four-year financial commitment would enable the completion of new trains for the Piccadilly line and the Docklands Light Railway (DLR), as well as modernizing the signaling on 40% of the Tube network.

This funding allows for the acquisition of a new tram fleet, advancement on discussions for additional Bakerloo line trains, and the renewal of critical roads, tunnels, and flyovers throughout London.

**Infrastructure**

In a setback for City Hall, there was no funding allocated for the new transport infrastructure projects that Mayor Sadiq Khan had been counting on.

These projects included the DLR extension to Thamesmead, the Bakerloo line expansion to Lewisham, and the West London Orbital connecting Hendon and Hounslow.

The focus of this Spending Review was evidently on the government’s priorities, which excluded new transport initiatives for London.

Instead, attention was directed toward previously announced infrastructure projects such as the expansion of Heathrow and HS2 to Euston.

When I inquired with the mayor’s office whether this Spending Review could be seen as anti-London, the response was clear: “Absolutely.”

Nevertheless, a small concession was made in a Treasury document recognizing “the potential growth and housing benefits” of the DLR extension, indicating that the government “is committed to collaborating with TfL to explore delivery options.”

Mayor Khan, who had previously stated that a Labour government collaborating with a Labour mayor would ensure London received its necessary resources, expressed his disappointment in a statement regarding the lack of commitment to new infrastructures.

He cautioned that without such investment, it would be impossible to construct “the new affordable homes essential for Londoners.”

**Housing**

On a positive note, the £39 billion set aside for affordable housing over the next decade has been praised by the G15 coalition of leading housing associations in the capital.

Chair Ian McDermott, who also leads the Peabody housing association, acknowledged that it was evident ministers grasped the gravity of the situation.

“In London, the challenges remain substantial, but this settlement provides a genuine chance to reverse the trend,” he stated.

Antonia Jennings, chief executive of the Centre for London think tank, concurred in that it would provide more clarity for home builders, while also emphasizing that “the details matter greatly.”

However, concerns arise regarding the distribution of this £39 billion, as it remains unclear how much will actually benefit London.

Jennings emphasized that a 10-year plan does little to alleviate the hardships faced by Londoners grappling with the lack of affordable housing at present.

She also pointed out that an increase in the Local Housing Allowance to support private renters would have been “very beneficial.”

The Spending Review also included £950 million intended to assist councils in providing “good-quality temporary accommodation” rather than resorting to expensive bed-and-breakfasts and hotels.

Local councils in London have welcomed this initiative, though it remains uncertain how much funding will actually reach the capital.

Currently, London’s boroughs spend a collective £4 million daily on temporary accommodations for homeless individuals, and it’s uncertain whether this new funding will significantly reduce that burden.

**Policing**

Indeed, the Chancellor announced a 2.3% increase in police funding, but with a significant caveat—the Metropolitan Police is facing a staggering funding gap of £260 million this year.

Commissioner Sir Mark Rowley warned that this could lead to cuts in officer numbers and may force the force to prioritize which crimes it can afford to tackle.

So, is the 2.3% increase sufficient? The Mayor of London does not believe so.

In his statement to us, he expressed: “I remain concerned that this Spending Review could lead to inadequate funding for the Met, resulting in fewer police officers.”

In response, Chancellor Rachel Reeves told the BBC, “I do not agree that cuts are necessary given the increase in funding for the police force.”

Clearly, there are significant tensions between London’s Labour mayor and the Labour government regarding this matter.