Eric Pickles

The Government has unveiled £3 billion of funding for London as City Hall takes on greater responsibility for housing and regeneration measures.

The funding package, announced by Communities and Local Government Secretary Eric Pickles, reflects the new powers given to the Mayor of London’s office.

From April the Mayor, rather than Government ministers, will be accountable for the capital’s affordable housing programmes including key developments at the Greenwich Peninsula and east London’s Olympic sites.

Eric Pickles said: “My department will provide £3 billion funding to the Greater London Authority (GLA) for its new responsibilities over the spending review period up to 2014-15, incorporating relevant funding from other departments.

“The funding will enable the Authority to support the housing programmes it will inherit from the Homes and Communities Agency, the closure of the London Development Agency, and Olympic Park transformation and legacy, as well as its existing functions.”

The Olympic receipts-sharing arrangement will enable the GLA to fund any further capital investment in the Olympic Park and surrounding area and cover the repayment of the residual debt it will inherit from the London Development Agency.

Ministers also revealed a new receipt-sharing arrangement for the Olympic Park which will cover any additional investment needed in the site and surrounding area.

In a written statement to MPs, Mr Pickles said the new housing and regeneration responsibilities “represent a major decentralisation of power away from Whitehall to London government, enabling the capital to manage their own affairs”.

Responding to the announcement, London Mayor Boris Johnson said: “This is a landmark agreement that sees responsibility and accountability for housing and regeneration resting squarely with London.

“We are now in a great position to drive forward vital investment that will deliver more affordable homes across the city, secure a lasting legacy in the Olympic Park and create thousands of new jobs.

“I will do all I can to grasp the fantastic opportunities this settlement provides and ensure that London becomes an even better place to live, work and invest in.”