Sadiq Khan backs Andy Burnham’s devolution plan – but warns him not to freeze London out

London Mayor Sadiq Khan has praised Andy Burnham’s understanding of mayoral devolution, saying that London’s success benefits the entire UK.

However, Sir Sadiq warned that he will challenge Mr Burnham if his decisions do not serve the capital’s interests.

Mr Burnham, who is poised to enter Downing Street within weeks, has long championed shifting powers from Whitehall to local elected leaders.

The Makerfield MP has outlined plans for mayors to control social housing, welfare, and education budgets, rather than these remaining with ministers.

City Hall had initially worried Mr Burnham’s agenda might divert investment from London and the South East towards the North. Sir Sadiq had previously stressed it was “crucial that the new Labour leader invests in every part of the country”.

However, he now feels Mr Burnham’s political journey ensures he “gets it”, and looks forward to working with the former Greater Manchester mayor.

“I’ve worked with him in the Cabinet, in the Shadow Cabinet, as a metro mayor and even on the football pitch,” the Mayor of London said.

“He can see the difference we can make working together. I’m looking forward to working with Andy as the new prime minister.”

Sir Sadiq has long been an advocate for City Hall receiving more decision-making and financial powers from the government – including demanding more jurisdiction over licensing, taxation revenue retention and housing arrangements.

The Mayor of London has struggled to break ground on the issue during his time in office, despite recent wins over strategic licensing and the overnight tourist levy in the English Devolution and Community Empowerment Act 2026.

In a thinly veiled message to Mr Burnham, he stressed that the capital succeeding means the whole country will prosper.

“My message is the same one that I gave to David Cameron, to Theresa May, to Boris Johnson, to Liz Truss, to Rishi Sunak and to Keir Starmer – when London succeeds, the rest of the country succeeds.

“I will work with you when it’s in our capital city’s interest, but I will challenge you when it’s not in our city’s interests. We contribute £4 out of every £10 in taxes raised by the government. We could contribute even more if there’s more devolution of powers and resources.”

Mr Burnham’s first major policy speech, given in Manchester on Thursday (June 25), revealed his wish to see the “biggest transfer of power out of Whitehall in modern times”.

This would include tens of thousands of government jobs being moved out of London to other UK regions, including a ‘Number 10 in the North’.

It could also see combined authorities allowed to keep 100 per cent of any increase in business rates that they generate to attract investment into their areas.

Steve Reed, the housing secretary, said Mr Burnham’s plan could help the capital’s housing crisis as it would ensure there is less migration from other cities to London, which “pushes up our housing costs and pushes up housing demand”.

Mr Reed also said that Mr Burnham “understands very clearly that when local areas get more control over decisions that affect them, they are better decisions”.