Budget gives London mayor tax-retention powers to fund Bakerloo extension and Euston
Chancellor John Healey's Budget gives mayors a share of business rates and income tax, which London's mayor Sadiq Khan says will help fund the Bakerloo Line extension, West London Orbital and Euston. City A.M. reported the plan from sources before the Budget; the Evening Standard covered the announcement.
1 / 3
The story, neutrally told
Right · 1City A.M. reported, citing sources, that London mayor Sadiq Khan would be given powers to deliver the Bakerloo Line extension, the West London Orbital and an expansion of Euston station as part of the government's devolution push. City A.M.RC “Khan will be able to push ahead with projects on extending the Bakerloo Line, delivering the West London Orbital and expanding Euston station, according to sources familiar with the matter.” Read at City A.M. ↗ Centre · 1In his first Budget speech, Chancellor John Healey said 100% of business rates would be retained locally by the end of the decade, with 20% of business rates revenue going to mayors from next year and a share of income tax receipts from 2028. Evening StandardN ““From next year, 20% of business rates revenue will go to Mayors, And from 2028, a share of income tax receipts will go to Mayors as well.”” Read at Evening Standard ↗ Centre · 1Healey described the plan as the "radical act of decentralisation in a generation"; the Evening Standard called it the biggest funding change since the London mayoralty was created in 2000. Evening StandardN “The sweeping move is the biggest funding change since the creation of the London mayoralty in 2000.” Read at Evening Standard ↗
Mixed · 2Both outlets say the new tax powers would increase City Hall's borrowing capability by around £10bn. City A.M.RC “Estimates suggest that around £10bn in extra borrowing capability from new tax powers will allow Khan to give the green light” Read at City A.M. ↗ Evening StandardN “The new tax powers are expected to give City Hall an increase in borrowing capability of around £10 billion.” Read at Evening Standard ↗ Mixed · 2The government will also allow tax increment financing, which uses future property tax revenues from developments to pay initial costs, and the Standard reported that Healey backed such a scheme to help fund a new Euston station. City A.M.RC “tax increment financing, a public financing method that uses future revenues from property taxes on developments to pay for initial costs” Read at City A.M. ↗ Evening StandardN “Mr Healey also gave his support for a tax increment financing scheme to help to fund a new Euston Station.” Read at Evening Standard ↗ Right · 1City A.M. said the Bakerloo extension, long sought by Khan, would run from Elephant and Castle to Lewisham, with stations at New Cross Gate, Burgess Park and Old Kent Road, and that the West London Orbital would add four Overground stations between Hounslow and Hendon. City A.M.RC “extend the Bakerloo line from Elephant and Castle to Lewisham”“The West London Orbital project would involve the creation of four new London Overground stations between Hounslow and Hendon.” Read at City A.M. ↗
Right · 1City A.M. said a £50m Euston upgrade has faced funding questions ahead of plans to run HS2 through the terminal. City A.M.RC “a £50m upgrade at Euston station has faced questions over funding ahead of plans to run HS2 through the terminal” Read at City A.M. ↗ Mixed · 2The Chancellor also backed Khan's plan for international trains to stop at Stratford, agreeing a Business Rate Retention Zone to fund a station upgrade the Standard put at about £20 million. Evening StandardN “He agreed to a Business Rate Retention Zone to fund the upgrade of the station which is expected to cost some £20 million.” Read at Evening Standard ↗ City A.M.RC “Stratford station will also be highlighted in Healey’s Budget as having the potential to become an international hub for travel” Read at City A.M. ↗ Mixed · 2Khan called the Budget "a really positive and significant day for London" and said the powers would help unlock the West London Orbital, the Bakerloo Line Extension and the Euston knowledge quarter project; a source close to him told City A.M. it was "real devolution". Evening StandardN ““Today’s Budget is a really positive and significant day for London.”” Read at Evening Standard ↗ City A.M.RC ““This is real devolution that we haven’t seen since the start of the mayoralty in its modern form,” a source close to the London mayor said.” Read at City A.M. ↗
Mixed · 2The Standard said the changes could affect whether Khan seeks a fourth term in 2028; City A.M. said the Treasury had been approached for comment and noted a full devolution policy paper would be published alongside the Budget. Evening StandardN “could sway his decision whether to seek a fourth term in office in 2028” Read at Evening Standard ↗ City A.M.RC “The Treasury has been approached for comment.” Read at City A.M. ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left1 outlet
No left outlet in our sources has covered this story yet.
Centre1 outlet
- Framing
- Budget-day report on the Chancellor's announcement, presenting it as a landmark boost for London and Khan.
- Emphasis
- Healey's quoted announcements, Khan's reaction, the effect on Khan's political future and other Budget measures.
- Leaves out or plays down
- Gives little detail on the Euston upgrade's cost or funding questions, or the Bakerloo route.
- Charged language
- “sweeping”“huge boost”“radical act of decentralisation in a generation”
- For example
-
“The Chancellor has handed Lord Sadiq Khan landmark new tax powers to raise billions for major new transport projects in London.” — Evening Standard
Right1 outlet
- Framing
- Pre-Budget scoop from sources on devolution powers for London projects, set within Andy Burnham's devolution drive.
- Emphasis
- Project detail (stations, routes, £10bn borrowing), Euston funding questions and Burnham's role.
- Leaves out or plays down
- No official on-record comment; Treasury not yet responded. Lacks the Chancellor's specific percentages and dates.
- Charged language
- “biggest transfer of power out of Whitehall in a generation”
- For example
-
“City AM can reveal.” — City A.M.
What every side reports
- Chancellor John Healey's Budget devolves business rates and income tax shares to mayors.
- The new powers are expected to add about £10bn of borrowing capability for London.
- The measures are tied to the Bakerloo Line extension, West London Orbital, Euston and Stratford.
- Sadiq Khan welcomed the changes.
Where accounts differ
-
What the Euston funding involves
- Centre
- The Standard says Healey backed tax increment financing to help fund a new Euston station.
- Right
- City A.M. refers to a £50m Euston upgrade that has faced funding questions, with the new powers letting Khan raise and invest more.
Sadiq Khan person
Welcomes the Budget as a 'devolution revolution' that will unlock transport projects, and thanks the government for backing Stratford international services.
“At its heart is a new devolution revolution.” — Evening Standard
Left1 article
Centre1 article
-
Budget 2026: Sadiq Khan given sweeping tax powers to unleash London transport revolution
Celebratory Presents the Budget as a major win for London and Khan, with lots of quoted ministerial and mayoral praise.
Right1 article
-
London to get Bakerloo Line extension and Euston upgrade in devolution push
Neutral Sourced scoop that sets out what the devolution powers would let Khan build, with project detail and funding caveats.
- 28 Oct 12:33 First City A.M.RC London to get Bakerloo Line extension and Euston upgrade in devolution push
- 28 Oct 14:02 +1h 29m Evening StandardN Budget 2026: Sadiq Khan given sweeping tax powers to unleash London transport revolution
- 28 Oct 15:01 +2h 29m MetroLC London’s Bakerloo Tube line is finally getting an extension
Times are when each article was published, or when we first saw it if the outlet gave no time.
Ask about this story
Loading…