§ Why should London have special treatment?
§ —London is the capital city
§ —It has a population of 7.4 million
§ —It has a GDP of £118.5 billion a year—larger than Portugal, Greece or Ireland
§ —London is Europe's most successful city at attracting foreign companies
§ —London's economic success is a major driver of the UK economy: failure to maintain its international competitiveness would be damaging for the whole of the UK.
§ What special issues does London face?
§ —Its population has grown by 600,000 since 1989: it is forecast to grow by a further 700,000 by 2016
§ —London has the second highest unemployment rate in England (after the North east): the rate for ethic minorities is 13.5%
§ —43% of London's children are living in poverty
§ —with the average cost of a home over £250,000, people on moderate incomes—including key workers such as nurses and teachers—cannot afford to live in London
§ —investment in public services—health, education, housing and transport—of £110 billion is needed over the next 15 years to make good past neglect and cater for growth.
429§ The complexity of the issues
§ Responsibilities for London are diffused among a range of institutions, including Government Departments and the Government Office for London, the Mayor, Assembly and GLA functional bodies, boroughs, Corporation of London, agencies such as the Housing Corporation, English Heritage, Environment Agency, Learning and Skills Councils, NHS, Strategic Rail Authority, Royal Parks etc.
§ Why is there a need for an inquiry now?
§ —it is not at all clear who is responsible for delivering solutions to London's problems—there are obstacles in the way of action on many major issues from transport to building new homes to sports stadia
§ —the Mayor has published a draft London Plan to set the future strategy for London's development, but lacks the powers or funding to implement it
§ —there is no clear focus for decisions affecting London within central Government
§ —there is no basis for determining what share of resources London should receive in relation to either its needs or the tax revenue it generates.
§ Why a Select Committee?
§ —there is an urgent need for an objective review of the arrangements for London government
§ —the GLA Act is an unusual piece of legislation for which there is no precedent: there are issues of the balance between local and regional levels, funding, the uniqueness of London and its evident problems.
§ —the All Party London Group has looked at these issues over a number of years, but they need to be considered on a more formal footing
§ —legislation will be brought forward on regional assemblies: it is important that it should be informed by the experience in London and that
§ —the opportunity should be taken to make any necessary changes in the London structure.