UK Politics: Andy Burnham Ally Criticizes Sadiq Khan on London's Decline

A prominent ally of Greater Manchester Mayor Andy Burnham has sharply criticized London Mayor Sadiq Khan, citing a perceived decline in the capital's momentum, insufficient housebuilding, and the prolonged closure of Hammersmith Bridge.

Jim O'Neill, a former Treasury minister and advisor to the Prime Minister, suggested that Khan is not a "really focused and functioning mayor." O'Neill observed that London's economy has "slowed significantly" over the past two decades and is not performing as expected.

"Obviously the mayor has not managed to build a lot of houses, despite often stating that ambition," O'Neill told LBC, referencing the ongoing closure of Hammersmith Bridge. The bridge has been inaccessible to motor traffic since April 2019 due to safety concerns, causing significant disruption for drivers and increased congestion on other Thames crossings.

O'Neill highlighted the lack of progress on the bridge as an example of London's "seeming never-ending inability to get anything done." He asserted that a "really focused and functioning mayor" should be able to address such issues.

His remarks came as he expressed support for Burnham's initiative to devolve more powers to England's regions. O'Neill contrasted London's recent performance with that of Greater Manchester, suggesting that while Greater Manchester has pioneered devolution efforts, London has "actually slowed down dramatically."

O'Neill posited that to achieve better overall economic growth across the country, London requires specific attention. He attributed some of London's recent economic weakness to broader forces since the 2008 financial crisis, including the peaking of the property market between 2014-15 and the negative fallout from Brexit, which he believes had a greater impact than anticipated.

He also raised questions about the effectiveness of London's mayoral model, suggesting it may not possess the same level of powers or cohesiveness as models like Greater Manchester's. "I don't think it should be seen, as I often read it, about the whole of this sort of focus is sort of further problem for London," O'Neill stated. "I think London needs specific attention myself, because it's so important to the overall economy."

When asked about Khan's record since 2016, O'Neill acknowledged that the situation is complex and that external forces might be at play. He pointed to the impact of changes to taxes on overseas ownership of rental property in London, implemented by the Osborne and Cameron government, which he believes may have affected the buy-to-let market economics. This, coupled with the property market peak in 2015 and the absence of European buyers post-Brexit, has contributed to a loss of momentum in London's housing market and other economic sectors.

O'Neill concluded that these factors might be independent of the mayor's actions, unless the mayor is granted enhanced powers. "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," he reiterated.