Rachel Reeves kicked Sadiq Khan out of her office in major bust up over London funding

The Chancellor kicked Sir Sadiq Khan out of her office in a major bust up over funding for the capital, it has been revealed.

Rachel Reeves cut a scheduled meeting with the Mayor of London short after they argued about cash for the city.

The Chancellor kicked Sir Sadiq Khan out of her office in a major bust up over funding for the capital, it has been revealed.

Rachel Reeves cut a scheduled meeting with the Mayor of London short after they argued about cash for the city.

“In private, she had heated, bitter disagreements with cabinet colleagues over squeezed budgets for their departments. ‘Get out of my office’, she told the Mayor of London, Sadiq Khan, as he tried to negotiate more funding for the capital”, the magazine reported.

On Thursday, Ms Reeves told LBC: “I don’t recognise that characterisation.

“I have got a great relationship with Sadiq, and I saw him just a couple of weeks ago at Remembrance Sunday”

But it is not the first disagreement the Mayor has had with the Chancellor.

Earlier this year the pair clashed over expanding Heathrow. Sir Sadiq is against building a third runway at the airport and consulted lawyers over the Government’s plans.

The Chancellor said if Britain wants a strong economy the answer “can’t always be ‘no’” to projects that will create growth.

Ahead of the general election, senior Labour figures including the Prime Minister also refused to back the Mayor’s flagship Ultra Low Emission Zone (Ulez) policy.

After the Spending Review in June, Sir Sadiq said the Chancellor had made “a colossal mistake in pitting London against the rest of the country” after she refused to back new transport links in the city.

However, in her Budget on Wednesday, Ms Reeves confirmed that the Docklands Light Railway (DLR) will be extended to Thamesmead.

The policy was not mentioned in her speech in the Commons but the full Budget document revealed that the Government was backing the scheme.
“The Government welcomes confirmation that London will deliver the DLR extension to Thamesmead, funded through Transport for London (TfL) and Greater London Authority (GLA) borrowing,” it said.

Ms Reeves launched a £26 billion tax raid on Britain in her second Budget.

Millions of people, including more than 2.6 million in the capital and wider South East, will be dragged into paying higher rates of income tax by 2030/31 after Ms Reeves extended the six-year freeze on the thresholds for paying the levy by another three years.

In another policy that will hit Londoners hardest, those with homes worth more than £2 million will be hit with a new £2,500 charge from 2028.

It will rise to £7,500 for homes worth more than £5 million.

The Labour Chancellor also announced a series of Budget giveaways for the poorest.

A freeze on regulated rail fares, which includes season tickets, peak returns for commuters and off-peak returns between major cities, will save London commuters up to £350 a year.

The lowest paid workers will benefit from the National Living Wage rising by 4.1 per cent to £12.71 an hour from April 2026.

Nearly 1.5 million children in England, including 260,000 in London, will benefit from the lifting of the two-child cap.