London Mayor Sir Sadiq Khan has unveiled his 2025/26 budget, focusing heavily on policing, fire services, transport, and affordable housing, amidst accusations of “wrecking ball” cuts to police funding by the previous Conservative government. Sir Sadiq announced plans to hike his share of council tax, adding nearly £500 a year for a typical London household, to ensure critical services are adequately funded, with a significant portion directed towards crime prevention.
At Mayor’s Question Time, Sir Sadiq emphasised the need to increase the Greater London Authority’s share of council tax by four percent, which would mean an extra £18.98 on the benchmark Band D rate. This increase comes as the mayor pointed to the ongoing shortfall in police funding, exacerbated by a decade of cuts, with the Metropolitan Police (Met) losing £1.1 billion in real terms during this period.
Sir Sadiq explained that £14 of the £18.98 increase would go directly to the Metropolitan Police, generating £54 million to bolster community policing and efforts to tackle violent crime in the capital. The move comes as a necessary response to what the mayor described as the Tory government’s “wrecking ball” approach to policing, which had left the force grappling with a significant budget gap.
“Keeping Londoners safe is my top priority as mayor,” Sir Sadiq declared, reaffirming his commitment to reducing crime. The funding boost will support the retention of 1,300 officers currently funded by City Hall, representing a quarter of the Met’s total budget. Previously, the government funded 80 percent of the force’s costs, while City Hall contributed just 20 percent. However, the balance has shifted, with City Hall now covering 25 percent of the Met’s budget.
Alongside this, Londoners will face an additional £4.98 on their council tax to fund the London Fire Brigade, which is the UK’s largest fire and rescue service. The funding aims to improve both performance and culture within the force, ensuring London is better protected in times of crisis.
The mayor also reaffirmed his commitment to continuing the free school lunch programme for all primary school children in the capital. This initiative, which helps 287,000 children, will cost £147.5 million, funded via business rates, and will run for a third consecutive year. Sir Sadiq has long championed this cause as one of his proudest achievements, and he has promised to extend the scheme as long as he remains in office.
The budget also includes a £1.5 billion commitment to building affordable homes, with a focus on helping councils purchase private sector homes and convert them into rental properties for those on waiting lists. This is part of a wider strategy to alleviate London’s housing crisis, ensuring that more Londoners have access to secure, affordable accommodation.
On transport, Sir Sadiq’s budget outlines several significant projects, including the development of the Superloop 2 and Bakerloop express bus services, which aim to improve connectivity across the capital. Other key initiatives include expanding the zero-emission bus fleet, increasing the number of school streets, expanding the cycle network, and making more stations step-free to improve accessibility for all.
A major focus will also be on securing long-term funding for Transport for London (TfL), particularly as the government is set to review its funding approach in June. Sir Sadiq has highlighted the importance of a multi-year funding deal to ensure the continued success of TfL’s operations, especially following the financial challenges posed by the Covid-19 pandemic.
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Additionally, projects such as the proposed extension of the Docklands Light Railway (DLR) to Thamesmead and the West London Orbital rail link will move forward with feasibility studies and planning. The Bakerloo Line extension will also progress to the next stage of planning, ensuring that London’s transport infrastructure continues to grow and evolve to meet the needs of its residents.
The mayor has also signalled that he intends to bring the Great Northern franchise under TfL’s control, a move that could improve the capital’s transport network by integrating it more effectively with London’s existing services.
Despite the significant spending commitments, Sir Sadiq faced criticism from some quarters, including from Conservative MPs, who argued that the council tax hikes would place an additional burden on hard-working Londoners. However, the mayor’s office has defended the increases, pointing to the urgent need to address issues of public safety, housing, and transport infrastructure.
With his priorities firmly set on combating crime and improving services, Sir Sadiq Khan’s new budget aims to secure a safer, more affordable, and sustainable future for Londoners, even as the capital grapples with ongoing financial pressures.
