Reduce number of London boroughs to 10 or 12, says Think Tank

A report published today (3rd Feb) by the cross-party think tank Re:State has urged a radical restructuring of London’s governance, warning that the capital’s current system is ‘outdated’ and ‘outflanked’ by other major UK cities.

The report, titled Capital at Risk: Rebooting London’s Governance for a New Era, argues that the Greater London Authority (GLA) lacks the fiscal and policy powers needed to run a global city effectively. It claims that while cities like Manchester and the West Midlands are gaining greater autonomy through ‘trailblazer’ devolution deals, London has been left behind with a quarter-century-old settlement.

Among ten key recommendations, the most striking is a proposal to slash the number of London boroughs from 33 to between 10 and 12 through a series of mergers. The report argues this would create larger, more strategic councils with populations of around one million each, improving efficiency, strengthening scrutiny, and simplifying city-wide planning.

The report also calls for a powerful upgrade to the London Assembly, transforming it into a high-visibility, parliamentary-style chamber. It recommends creating an official opposition led by a ‘Shadow Mayor’ and granting the Assembly new powers to hold the Mayor to account, including a formal power of censure.

A central proposal is to move London to a “reserved powers” model of devolution, similar to Scotland’s, where the Mayor and GLA can act in any area not explicitly reserved to central government or boroughs. This would be paired with significant new fiscal powers, including making the GLA the default authority for new taxes like a tourism levy and allowing it to retain a share of national taxes.

‘London’s governance is stable but incoherent and underpowered,’ the report concludes. It warns that without reform, the city risks ‘strategic drift’ and an inability to respond to rapid economic and demographic change.

While aimed at streamlining decision-making, borough mergers would be politically contentious and logistically complex. However, Re:State insists that reform is a national priority, arguing that a underpowered London holds back the entire UK economy. 

The full report can be read here.

Photo: Frans Ruiter