Sadiq Khan interview: "housing, housing, housing" is the priority for London

The shadow London minister says the capital needs 800,000 new houses and criticises Labour's London mayoral "beauty parade".

Spend an hour with Sadiq Khan and you will leave feeling more optimistic about the future of British politics. The sharp-suited shadow justice secretary combines energy and charisma with a meticulous grasp of his brief and a gift for speaking fluently without lapsing into press-release jargon.

It is these qualities that Khan is seeking to put to use in his new role as shadow minister for London. Eleven months after he took over the post from Tessa Jowell, the MP for Tooting has edited a Fabian pamphlet entitled Our London: the Capital Beyond 2015, with contributions from Doreen Lawrence on racial diversity, Andrew Adonis on transport infrastructure, Bonnie Greer on the arts and the Green peer Jenny Jones on the environment. “It’s not a Labour booklet; I’ve deliberately sought not to be tribal,” Khan says when we meet at Portcullis House, Westminster. “Some of this stuff wouldn’t be in the Labour manifesto, let’s be frank – some of it isn’t Labour policy at the moment – but these are the sorts of discussions we should be having as people who care about London.”

He contrasts his urgency with Boris Johnson’s ill-defined vision. “My big criticism is not that he’s a part-time mayor, or that he’s distracted in his job by becoming the next leader of the Conservative Party. My biggest criticism of him is his lack of ambition for London.”

Khan’s own chapter reflects on what, echoing Tony Blair on education, he describes as the three biggest issues facing the capital: “housing, housing, housing”. Having grown up on a council estate in Earlsfield, south London, before his father, a bus driver, saved enough to buy his own home, he tells me: “I understand how important council housing is. I actually think it’s got so bad that housing is the single biggest challenge facing London politicians of my generation.”

While Ed Miliband has pledged to build at least 200,000 homes a year by 2020 if Labour is elected, Khan points out: “The number of new houses we’ll need in London is, according to councils, 800,000 . . . it’s arguable that London could take it all. We’ve got big, big questions and no one’s talking about them.”

Would he like to see the cap on council borrowing removed to allow local authorities to build more affordable housing? “That’s one of the things we’re exploring with Ed Balls. There are a number of options we have. What I’m hoping is that the lobbying pays off . . . it’s a good example of London setting the agenda.”

The mention of Balls prompts me to ask Khan for his thoughts on the shadow chancellor’s much-criticised response to George Osborne’s Autumn Statement. “The reality is, in that House of Commons chamber, when Ed Balls stood up, there was a wall of sound and it was quite clear, whatever he would have said, that the Tories had orchestrated and organised to give him a hard time, and that was going to happen. You can either plough through it, or allow yourself to be defeated by the Tories.” He ends with those words often regarded as the political kiss of death: “Ed Balls has the full confidence of the shadow cabinet, I’m sure.”

One of the policies announced by Balls and Labour – the introduction of a mansion tax to fund the return of the 10p tax band – was recently criticised by Jowell, David Lammy and Diane Abbott, all likely candidates for the 2016 Labour mayoral nomination, as a “tax on London” that would penalise the asset-rich but cash-poor. Khan does not disguise his anger at their comments. “All I say to colleagues, in the kindest, politest way, is: ‘Actually, you look at the bigger picture. Are you in favour of trying to help those who own the least by giving them a new rate of tax at 10p? If you are, then ask yourself how you go about doing that.’ What I’d [like to] do is work collegiately with senior members of the Labour Party to find a policy that works, rather than going for the cheap soundbite, which doesn’t address the issue of making sure that we’ve got a fair tax policy.”

Lammy, Abbott and Jowell were speaking at an event hosted by Progress at which Khan was scheduled to appear but from which he pulled out. “When I was first asked to do the Progress event, I was told it was going to be a forum to discuss ideas about London and it was quite clear to me that it was turned into a beauty parade,” he says. In an uncoded rebuke to those already positioning themselves to win the mayoral selection contest, he adds: “I’ve got no interest in playing ego politics. It’s about me making sure that I do the job I’ve been given as shadow minister for London with the seriousness it deserves.

“I’m a member of Team Labour. My obsession is to make sure we do the best we can in the local elections in May 2014.”

When I point out that Khan’s pamphlet is likely to be seen as his own pitch for the mayoral nomination, he replies: “I think the job of a conscientious, hard-working shadow minister for London is to bring together the best ideas in the business and do this booklet. If I was running for the job of mayor of London, this would not be the time to be having long, deep discussions about the future direction of London, but I think it’s important for London’s future and for Labour’s future. I’m not interested in a beauty parade or a contest of personalities.”

But he notably refuses to deny that he has an interest in the post: “If others want to flatter me and throw me those compliments, I’m not going to reject them.”

Sadiq Khan speaks at the Labour conference in Brighton earlier this year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

This article first appeared in the 12 December 2013 issue of the New Statesman, Power Games

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR