London's Governance Crisis: Why the Capital Needs a Chief Executive, Not an Ambassador
London, as a global capital city, finds itself in a paradoxical position. While it competes internationally with metropolises like New York, Tokyo, and Paris, its governance structure remains uniquely constrained, preventing it from reaching its full potential. The role of Mayor of London, currently held by Sadiq Khan, is often perceived as that of an ambassador—representing the city on the world stage and advocating for Londoners domestically. However, this focus on diplomacy and promotion masks a deeper issue: the mayor lacks the executive authority necessary to govern effectively.
The Power Deficit: London vs. Global Peers
Compared to mayors of other major global cities, London's leader operates with significantly fewer powers. For instance, the mayors of New York and Berlin wield substantial control over zoning and land use decisions, enabling them to shape urban development proactively. The Council of Paris possesses the authority to levy substantial municipal taxes, funding critical public works independently. Tokyo's government can issue bonds to secure financing for infrastructure projects. In stark contrast, the Mayor of London exercises limited budgetary control, with even less financial discretion than mayors in Manchester or the West Midlands, who have benefited from progressive devolution agreements.
This power deficit is further exacerbated by London's reliance on central government. The Home Secretary retains ultimate authority over the appointment and dismissal of the Metropolitan Police Commissioner, while Transport for London (TfL) frequently requires Treasury bailouts to maintain operations. Data from 2015 highlights this dependency: 69% of funding for London's local government organisations came from central grants, compared to just 33% in Berlin and a mere 6% in Tokyo.
The Borough Problem: Fragmented Decision-Making
Compounding the mayor's limitations is the fragmented nature of London's governance. The capital is divided into 33 boroughs, each with considerable autonomy over planning and land use. In comparison, Paris operates with 20 boroughs, Berlin with 12, and New York with only five. This proliferation of local authorities diffuses responsibility, making coordinated, city-wide decision-making challenging. As a result, no single entity—not the mayor, nor the boroughs collectively—holds clear accountability for London's overall direction, stifling its ability to act decisively as an economic engine for the UK.
A Blueprint for Reform: Unleashing London's Potential
Recent research from Re:State proposes a radical overhaul to address these governance shortcomings. The blueprint advocates for transforming the mayor's role from a figurehead into a true chief executive, equipped with the tools to govern effectively. Key recommendations include granting the mayor reserved powers, similar to those of the Scottish Government, to reduce reliance on consensus with Whitehall and boroughs. Additionally, it calls for consolidating the 33 boroughs into approximately 10 larger entities, streamlining administration and enhancing coordination.
Further reforms involve restructuring the Greater London Assembly by replacing constituency Assembly Members with borough leaders, fostering more integrated governance. Crucially, the mayor would gain revenue-raising powers, allowing for greater autonomy in tax collection and expenditure to self-fund essential infrastructure projects. This shift would not only empower the mayor but also increase accountability, as clearer authority would invite more rigorous scrutiny of policies.
Conclusion: From Talk to Action
London's ambitions are currently hamstrung by an outdated governance model that prioritises ambassadorial functions over executive leadership. As the city approaches its next mayoral election in two years, the call is for a leader who can act as a chief executive—making strategic decisions to unlock investment and drive progress, rather than merely promoting the city abroad. By implementing these reforms, London can finally harness its full potential, competing on equal footing with other global capitals and securing a prosperous future for all its residents. It is time for the government to unleash London by empowering its mayor to govern with the authority the role demands.
