London mayor Ken Livingstone is set to triumph in a long-running struggle with the ODPM and win control of the capital’s £1.1bn annual housing budget if Labour is re-elected.

The move emerged after Labour pledged in its manifesto to “review the powers of the London mayor and the Greater London Authority”.

A spokesman for the ODPM said: “The power over housing investment will be included in the terms of the review of the GLA’s powers, although the precise terms have yet to be decided.”

The move represents a significant softening of the ODPM’s previously steadfast refusal to allow Livingstone greater housing powers beyond producing the capital’s regional housing strategy later this year.

The concession comes after the capital’s Commission on Local Governance called for responsibility for housing investment to be passed from the Government Office for London to the GLA (HT 24 March, page 13).

A GLA spokesman said: “We would welcome the government bringing housing strategy and investment within the mayor’s powers. This would give greater coherence to policy-making and delivery of housing.”

Tony Newman, chairman of the Association of London Government’s housing committee, said: “There has been a major, significant, utterly untenable democratic deficit in London over the last few years. Anything that happens to change this is very welcome.

“If the GLA gets the investment power, there will be a much greater degree of accountability.”

Source

Housing Today