What Does The Spring Budget Mean For London?

By Londonist Staff Last edited 33 months ago
What Does The Spring Budget Mean For London?
George Osborne last year. Photo by Ian Davidson in the Londonist Flickr pool

Once again George Osborne has dangled a red briefcase in front of his face, and once again it's had implications on London.

Although the finer detail is still being scrutinised, the key headlines from the spring 2016 budget are:

From April 2017 the Greater London Authority (GLA) will get powers to set and retain business rates. That's three years earlier than expected and is a step towards greater devolution for the city. What that means in practice — not just the cost businesses, but what impact that might have on how much money London gets from central government — remains to be seen.

Crossrail 2: We already knew about this one, but the chancellor confirmed it today: £80m will go towards the £27bn cost of London's Crossrail 2 (with a further £300m package to help transport in the north, wherever that is).   

People across the UK under 40 will be able to invest in a 'lifetime ISA'. For every £4 they save, the government will give them £1. And with a pay-in limit of £4,000 per year, that means those saving up for a London home (or anything else for that matter) could make £1,000 a year.

Capital gains tax is going down: the headline rate from 28% to 20%, and the base rate from 18% to 10%. The Chancellor may be hoping this could encourage second homeowners in London to sell up, increasing the supply of housing in the city.

Finally, there's extra funding for academies, which means more primary and secondary schools in the capital will likely be making the switch.

Last Updated 16 March 2016