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Boris Johnson hit out today as it emerged that the London Development Agency is to lose £22million in order to fund Gordon Brown's housebuilding programme.
The Mayor wrote to Business Secretary Lord Mandelson to complain that the cuts would inevitably mean the capital's economic development body would have to scale back its work helping business and jobs.
The LDA faces cuts of up to £5million this year and £17million in 2010-11, the Mayor revealed.
He said the move was part of attempts by the Prime Minister to find funds for his £1.5billion housebuilding drive, announced this week.
In his letter to Lord Mandelson, Mr Johnson said the cuts would undermine devolution and City Hall's responsibility to determine its budgets.
The LDA, which recently axed one in three of its staff, has already suffered cash cuts four times since January last year and the latest move would bring the total reductions to more than £90million.
"Quite simply, a decision to make a further cut in the funding of the LDA would undermine the agency's ability to deliver on mayoral priorities for economic development," Mr Johnson complained.
"The mooted further cut in the LDA's budget is, therefore, completely unacceptable."
The Mayor pointed out that none of the cuts was discussed with him in advance and had been "simply imposed" by Whitehall.
He said that with the LDA already having to divert cash to help to fund the Olympics, the reduced budget would almost certainly mean the agency would have to go back on its funding commitments.
"Money invested by the LDA will have a direct benefit to London, whereas there is no certainty over what share of the national housing programme will come to the capital," Mr Johnson wrote.
Reader views (12)
There is too much development in London. Anything that slows it down is okay with me.
- Muskadash, Nottingham, UK, 06/07/2009 00:26
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Why people can't see Boris is a bumbling fool who is causing real damage to London is beyond me. At every turn Boris has tried to win popularity by undermining central government. Now its payback time and he is out of his depth. Unfortunatley it is Londoners who will pay the price for his Billy Bunter approach to governance, while he continues to swan about with the Tory toffs at the Telegraph.
- Steve S, London, 03/07/2009 21:05
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At least we stand to get some new homes from this. Who knows what the LDA would do with it - lose more of it perhaps?
- John, Catford UK, 03/07/2009 16:38
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Well you cant have your house and live in it
- Ereed, Bournemouth,UK, 03/07/2009 16:34
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Commentors, all together now, say DAME SHIRLEY! She was the tory who used tax payers cash to move tory voters into specific constituencies in order to FIX ELCETIONS. Brown's actions are nothing compared to that swindling tory!
- Jon, Brighton, 03/07/2009 15:27
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Has Boris or anyone asked David Cameron for a quote about this? Or, perhaps, the jumped-up, stirring the filth, Labour Party chief in George Osborne's constituency might offer a few well chosen words about his halfwit, non elected PM.
- Ted, London, 03/07/2009 15:02
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London's getting screwed to boost Brown.
Why isn't this the lead story on the Home page?
- Charles, London, 03/07/2009 14:55
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This is what Labour does; takes money from those who have earned it and gives it to those who will vote Labour.
- St, London, 03/07/2009 14:42
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No doubt these houses are being built in Scotland or Labour strongholds. More govermental rape of London for its own agenda.
- Dereck, London, England, 03/07/2009 13:44
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So, London is to be punished for voting Boris in. Let's not forget this at the next general election.
What comment now from the Greens?
- Sarah, London, 03/07/2009 13:30
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Commie Gordon and the Mandelburo strike again!
Go get 'em, Boris!
- Anil Chatterjee, Manchester, 03/07/2009 11:36
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Boris should ask the olympic committee to account for the £100 MILLION has allegedly gone missing from the public purse. KPMG have sent in forensic accountants to investigate the allegation but the committee say the results of the investigation will not be made public. As it is tax payers money which is unacounted for we have a right know if any irregularities in their accounting practices are uncovered. If £100 Million has "gone missing" then the LDA will be made pour more money into the 2012 games.
- R.F., Yorks, UK, 03/07/2009 10:07
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