London mayor takes pay cut and warns of cuts to services

London Mayor Sadiq Khan took a 10% wage cut and warned he would have to make big cuts to police, fire and transport services unless the government fills a near-£500m financial hole caused by Covid-19.

Khan said he took the pay cut to show solidarity with frontline workers and those affected by Covid-19 crisis. He also froze salaries for the 15 direct appointments in his senior team.

He said the Greater London Authority faced a £493m budget shortfall over two years caused by an unprecedented drop in business rate, council tax and fare income and emergency costs during the pandemic. Khan said local government across the country faced similar pressures.

Unless the government steps in Khan will have to cut the budgets of the Metropolitan Police and London Fire Brigade when the services are dealing with rising violent crime and changes following the Grenfell Tower fire, he said. Cuts could also hit efforts to get London's economy moving again, support jobs and invest in skills, Khan said.

The Labour mayor, who is up for reelection in 2021, accused the government of imposing a new round of austerity by failing to support local authorities hammered by the cost of the coronavirus crisis.

"Covid-19 has had a devastating impact on London’s public finances which were in great shape before the pandemic," Khan said. “This is the worst possible time for a return to austerity – just when we need to invest in London’s recovery.

"Unless ministers act, the current number of police officers will need to be reduced and it will be impossible to tackle youth violence or make the changes to the London Fire Brigade that are desperately needed after the awful Grenfell Tower tragedy."

Khan said his wage cut was on top of his decision to break with his predecessors, including Prime Minister Boris Johnson, by not taking a pension when he took was elected.