Sir Sadiq Khan is set to receive extensive new powers around transport, taxation and licensing
Sir Sadiq Khan is set to receive extensive new powers around transport, taxation and licensing after the English Devolution Bill finally became law last week. The legislation, which was first introduced into the House of Commons last July, gave Mayors across the country new powers on planning and housing as part of a government drive to shift responsibilities from Whitehall to locally elected representatives.
The Greater London Authority (GLA) and the Mayor of London already possesses some of these powers – for example, Sir Sadiq has had the ability to ‘call in’ rejected planning applications since 2008 and establish Mayoral Development Corporations, such as the organisation behind the Queen Elizabeth Olympic Park.
London, however, is still a devolutionary beneficiary of the new law, with officials briefing that any changes will be applied to the GLA “on a case by case basis…enabling the GLA to benefit from the Devolution Framework, while maintaining its bespoke arrangements.”
What new powers will Sir Sadiq Khan get?
Strategic Licensing to boost nightlife
The Mayor will be granted new “call in” powers to review licensing applications in areas of strategic importance.
He has previously said that this would allow more nightlife and hospitality businesses in the capital to “stay open, expand and succeed”. Previously, he said, the Licensing Act 2003 fails to “prioritise night-time activity or small businesses”, often hindering them with cumbersome licensing conditions and reviews.
With the new law, however, he will be able to override decisions made by individual boroughs and set out a new London-wide statement declaring his licensing policy for the city.
Tourist Tax
London will follow other global tourist hotspots in being allowed to impose an overnight levy on travellers. It is estimated that the tax could raise around £350million every year, based on current tourism figures.
However, there is currently no guidance on how much of this revenue should be retained by City Hall, and how much should be given to individual boroughs.
Lane Rental
In his submission to MPs overseeing the progression of the law, the Mayor of London asked that powers to approve ‘lane rentals’ – where authorities charge companies when they carry out works on busy roads at times or locations likely to cause disruption – be given to Mayors, instead of remaining with the Transport Secretary.
Ministers waved this through, with officials saying that the aim “is to encourage works to be planned at quieter times or completed more quickly, reducing congestion and inconvenience for road users.”
Transport
The law gives sweeping licensing powers to Transport for London (TfL) to create a single city-wide regulatory framework for dockless e-bike operators. This will mean new requirements for firms around parking, safety and accessibility.
A TfL spokesperson said: “We welcome the new legislation which will provide TfL proper powers to regulate dockless bikes across London. This would provide the future ability to replace the existing patchwork and borough by borough approach with a consistent licensing scheme for London.
“We’re working closely with London’s boroughs and other partners to develop proposals for a London-wide licencing scheme and will be setting out further details in due course.”
What powers did he not get?
While the Mayor of London appeared to have all his prayers answered, some devolutionary powers were held back.
Lord Bassam of Brighton laid down an amendment to the Bill to allow regional Mayors to approve their own transport schemes without waiting for the green light from the Transport Secretary.
Currently, Sir Sadiq and other Mayors have to appeal to ministers for an “Order” under the Transport and Works Act 1992 (TWA) in order to obtain the legal powers to build a project.
However, Lord Hendy, a former TfL Commissioner who now sits as a transport minister, said that the creation of “multiple new decision-making bodies would risk introducing inconsistency in the interpretation of policy and the use of powers, creating uncertainty, causing delays and potentially increasing the risk of challenge to the schemes.”
However, the amendment was not moved in the end, meaning no vote was taken on it. Ministers also refused to grant Sir Sadiq the powers to implement rent controls in London, a long-term ambition of the Mayor.
City Hall’s response
The new powers have been welcomed by both London Assembly Members and the Mayor himself.
Bassam Mahfouz, chair of the London Assembly GLA Oversight Committee, told the Local Democracy Reporting Service (LDRS): “Londoners are crying out for real, visible change and this Act delivers! It brings investment in affordable homes, better transport and vital local services, while putting power firmly in Londoners’ hands so more of the money raised here is spent here.
“It also marks a landmark step with the introduction of a new Overnight Stay Levy that we’ve been calling for. Bringing London in line with other global cities, it could raise up to £350 million a year to reinvest into keeping London the number one city to visit and benefit Londoners day-to-day lives.
“This shows what can be achieved when a Labour Government, Mayor and local councils work together to secure the best deal for London.”
A spokesperson for the Mayor of London said: “The Mayor welcomes this important new Act and supports plans that will grant more powers and responsibilities to regional Mayors across the country.
“This legislation will give the Mayor new powers over licensing, which will help to deliver the full potential of the capital’s nightlife and hospitality industries.
“The Government is also consulting on a tourism levy to help boost the economy and has recently committed funding for the Docklands Light Railway Extension to Thamesmead.
“The Mayor is pleased that the Government are also backing his plans to transform Oxford Street, as we work to improve our public services and unlock growth.”
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