London

London will benefit from schemes announced in the Spending Review:

Growth

the creation of a UK-wide Green Investment Bank that will be funded by a £1 billion spending allocation and additional proceeds from the sale of Government-owned assets. The bank will encourage significant additional investment in green infrastructure;
the £1.4 billion Regional Growth Fund will support projects with significant prospects for sustainable private sector growth and provide support for people in areas which are currently dependent on the public sector;
Tax increment financing will enable local authorities including those in London, to borrow against locally raised business rates; and
Capital investment programmes in London will concentrate new investment on infrastructure underpinning economic growth, and maintaining existing public assets:
- Crossrail – a new line linking East and West London providing an additional 10% to London’s rail capacity
- £220 million funding for the UK centre for Medical Research and Innovation at St Pancras
- Transport for London – continued funding will help support the tube upgrade programme which will increase capacity by 30% in 2020
- Olympics will help to transform East London – five major new sporting venues for elite and community use, an initial 2,800 new homes, and an estimated 8,000-10,000 new jobs on the Park

funding the increase in participation in education and training, benefiting 5.3 per cent of 16-18 year olds in London that are not in Education, Employment or Training;
uprating of the Basic State Pension (BSP) by the highest of earning, prices or 2.5 per cent, from April 2011, benefiting around 1 million people in London; and
above indexation increases in the child tax credit, funded by savings from restricting child benefit entitlement for households with a high rate taxpayer, potentially benefiting over 540,000 families in London.

a settlement for local government that radically increases local authorities’ freedom to manage their budgets, resulting in greater control over £7 billion of grants; and
Community budgets will be run in 16 local areas, including Westminster, Islington, Lewisham, Barnet, and Croydon, from April 2011 for families with complex needs, to help improve outcomes, and reduce duplication and waste.

The Spending Review builds on the foundations for sustainable, balanced, private sector-led recovery set out in the Chancellor’s June Budget. The Budget announced a number of initiatives which will help build an economy that works for the London.