Andy Burnham Ally Criticizes Sadiq Khan Over London's Stagnation

A close ally of Andy Burnham, the former Greater Manchester mayor, has criticized London Mayor Sadiq Khan's performance, particularly on housing development and infrastructure projects. Jim O'Neill, a former Treasury minister and advisor to the Prime Minister, suggested that London has lost its economic momentum and questioned whether Khan is a "really focused and functioning mayor."

O'Neill pointed to London's low housebuilding rates and the prolonged closure of Hammersmith Bridge as evidence of the city's inability to address significant issues. "Here's something that for nearly, what is it, eight years, absolutely nothing happens about," O'Neill said of the bridge, which has been closed to motor traffic since April 2019 due to safety concerns. He argued that a "focused and functioning mayor" should be able to resolve such problems.

O'Neill made these remarks while supporting Burnham's push for greater devolution of powers to England's regions. He contrasted the perceived decline in London with the progress in Greater Manchester, suggesting that London has "slowed down dramatically" in recent years.

He attributed some of London's economic slowdown to external forces, including the property market's peak around 2014-2015 and the negative impact of Brexit, which he believes had a greater fallout than anticipated. O'Neill also suggested that the mayoral model in London might lack the powers or cohesion of other regional bodies, such as Greater Manchester's.

Regarding Khan's tenure since 2016, O'Neill acknowledged that external factors play a role. He noted that changes to taxes on overseas ownership of rented property in 2015 may have affected the buy-to-let market, contributing to the London housing market peak and a subsequent loss of momentum. The absence of European buyers post-Brexit also impacted the property market and, more broadly, London's role as a global capital. O'Neill concluded that while these forces are significant, the mayor's ability to act might be constrained by the powers afforded to the office, or by a lack of effective action.

"And so, there's all of those things which might have absolutely nothing to do with the mayor, unless you give the mayor increased powers," O'Neill stated. "What when I look at it specifically about the mayoral model, obviously the mayor has not managed to build a lot of houses, despite often stating that ambition."