Home

Sadiq Khan hits out at Spending Review over London’s share of investment

Sadiq Khan
Photo: London Labour

London mayor Sadiq Khan has hit out at Rachel Reeves’ Spending Review over “insufficient funding” for the Met Police and there being “no commitment” from the Chancellor to invest in the capital’s infrastructure.

While the Chancellor has torn up the Treasury’s green book to invest billions in infrastructure outside London, it appears to have come at the cost of investment in the capital.

In a statement shared with LabourList, Khan welcomed the multi year deal for City Hall and Transport for London announced in the Spending Review, before launching expressing his disappointment at London’s share of the spending splurge.

Subscribe here to our daily newsletter roundup of all things Labour – and follow us on  Bluesky, WhatsApp, Threads, X or Facebook.

“I’ve been determined to stand up for London and it’s good news that we have won extra resources for transport and housing. I have been campaigning for years for a multi-year deal for City Hall and for Transport for London and I welcome this agreement.

“However, I remain concerned that this Spending Review could result in insufficient funding for the Met and fewer police officers. It’s also disappointing that there is no commitment today from the Treasury to invest in the new infrastructure London needs.

“Projects such as extending the Docklands Light Railway not only deliver economic growth across the country, but also tens of thousands of new affordable homes and jobs for Londoners. Unless the government invests in infrastructure like this in our capital, we will not be able to build the numbers of new affordable homes Londoners need.

“As Mayor, I’ll continue to make the case to the government that we must work together for the benefit of our capital and the whole country. The way to level up other regions will never be to level down London. I’ll continue to fight for the investment we need so that we can continue building a fairer, safer and greener London for everyone.”

Lacking vision

Asked about London, a government spokesperson told Westminster journalists the government was backing the expansion of Gatwick, Luton and City airports, the pedestrianisation of Oxford Street and the financial services sector.

Previously it had been reported in the The Guardian that Khan was furious with the Chancellor over the lack of funding for London in the spending review.

And it comes after Met Police commissioner Sir Mark Rowley, in a joint letter with Britian’s other most senior police chiefs, appealed directly to Keir Starmer for more funding last week.

READ MORE: Cabinet rankings: Members happier as memo lifts Rayner and even Reeves jumps

Unite general secretary Sharon Graham was also critical of the Spending Review, saying it “lacks the vision to deliver the fundamental change needed for everyday people.”
“The UK is the sixth richest economy in the world, and we need to end this cautious cycle of robbing Peter to pay Paul. You can’t have an NHS without workers. Staff are crying out for fair pay increases to offset a decade of real terms pay cuts. Pitting workers against communities is not the answer.”
She said Labour needs to “bite the bullet”, end the “self imposed” fiscal rules and implement a wealth tax.
“Today was a missed opportunity to lay out the funding to tackle key issues, including the energy costs crippling British industry and the local authority debt which is straight-jacketing services in our communities.”

A new chapter

However, the GMB union welcomed the Spending Review, calling it “a new chapter”.
Rachel Harrison, GMB National Secretary, said: “The public sector funding announced in today’s spending review looks enormously positive – a new chapter.

“GMB will always welcome extra cash for the NHS, while fresh money for the police, prisons and probation is something we’ve long called for, along with funding for school buildings and mental health provision in education.

“But, as ever, the proof will be in the pudding as to whether this is enough money  – and if it ends up in the right places.”

Both GMB and Unite were two of Labour’s biggest donors during then first three months of this year.

Read more of our 2025 Spending Review news and analysis:

  • SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
  • SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
  • DONATE: If you value our work, please chip in a few pounds a week and become one of our supporters, helping sustain and expand our coverage.
  • PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
  • ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].
Tags: Spending Review / local elections 2025 / UK Labour Party / Local election results / UK politics / PM / Labour Government / Keir Starmer / House of Commons / Chancellor / prime Minister / Downing Street / Parliament / Politics / Conservatives / Government / Rachel Reeves / Labour / Local elections / MPs / Policy / Sadiq Khan / London / Labour Party /
Subscribe to our daily email

More from LabourList

DONATE HERE

Proper journalism comes at a cost.

LabourList relies on donations from readers like you to continue our news, analysis and daily newsletter briefing. 

We don’t have party funding or billionaire owners. 

If you value what we do, set up a regular donation today.

DONATE HERE