Barnet transport and budgets to shift under London devolution plans
Mayors gain power to spend local tax income and approve £500m schemes without Whitehall sign-off
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Barnet residents will face changes to transport, housing and council services after the government announced devolution plans that hand London mayors a share of local taxes for the first time. The Prime Minister confirmed on 18 July that mayors will keep a portion of income tax and business rates raised in their areas, with details to be set out in Chancellor John Healey’s Autumn Budget.
The Transport Secretary, Heidi Alexander, also raised the cost threshold for local transport projects requiring Whitehall approval from £200m to £500m. This means schemes like the proposed West London Orbital rail link, which would connect Hounslow to Hendon via Brent Cross and Cricklewood, could proceed faster if they stay under the new limit. The project is estimated to cost at least £1bn, as reported by the Evening Standard.
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What the changes mean for Barnet
Barnet Council will gain more control over local spending but must work with the Mayor of London to decide how new funds are used. London Councils Chair Stephen Cowan said boroughs must be involved in both design and delivery of devolution plans. The council has not yet announced how it will consult residents on the changes.
Transport upgrades in the borough could accelerate under the new rules. The West London Orbital, a proposed 18.5km overground route, would link Hendon to Hounslow via existing rail and Tube stations. Transport for London estimates the scheme will cost at least £1bn, which exceeds the new £500m threshold for automatic approval. It is unclear whether the project will be split into smaller phases to avoid Whitehall sign-off.
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Studies suggest London could gain £2.3bn annually from the devolution plans, compared to £135m for Hull and East Yorkshire. Ministers have said they will introduce mechanisms to reduce regional inequalities, but no details have been published. Antonia Jennings, CEO of the Centre for London, said the government must consider London’s higher infrastructure costs when setting funding rules.
London has shown what can be achieved when power and responsibility are aligned. From the delivery of the Elizabeth Line to major steps forward in adult education, we’ve proved the capital can and should be trusted.
Antonia Jennings, CEO, Centre for London
What happens next
The government will publish a devolution white paper before the Autumn Budget, expected in October. Barnet Council has not yet announced a public consultation on the plans. Residents can submit views to the council or respond to the government’s white paper when it is released. The Mayor of London’s office said it will work with boroughs to ensure local priorities are reflected in spending decisions.
Questions this report answers
+How much money could London mayors keep from local taxes?
London mayors will keep a portion of local income tax and business rates from the 2025 Autumn Budget, potentially adding £2.3bn annually to City Hall budgets. This means more funding will be available for transport, housing and council services without needing Whitehall approval for each scheme.
+What transport projects no longer need government approval?
Transport projects costing under £500m no longer need Whitehall approval, speeding up schemes like the West London Orbital rail link. This change allows faster progress on local transport upgrades, though the Hendon to Hounslow route is estimated at £1bn.
+How will Barnet residents have a say in the changes?
Residents can respond to the devolution white paper expected before the Autumn Budget, though Barnet Council has not yet published a consultation. The government will gather public views before finalising the plans, expected in October.
+Will the West London Orbital rail link still need government approval?
The West London Orbital rail link is estimated to cost at least £1bn, which exceeds the new £500m threshold for automatic approval. It is unclear whether the project will be split into smaller phases to avoid Whitehall sign-off.
News London Desk
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