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Staff working at Sir Sadiq Khan’s City Hall have received an unprecedented bombshell warning of possible job losses. An email was sent to the 1,500 Greater London Authority staff on Thursday alerting them to the risk of redundancies and saying that planning had started for “all scenarios” due to the likely need to make savings. This is thought to be the first time in the 25-year history of the GLA that such a dire warning has had to be issued – highlighting the concern over the potential loss of millions of pounds in Government funding. Sources say it is impossible at this stage to say how many posts could be at risk. However it has been confirmed that if the financial position remains unchanged, efficiency savings will be required – including “possible cuts to GLA posts”. The timing will be an embarrassment to Sir Sadiq, coming as he arrives back from Brazil after spending much of the week with a number of key aides at a climate change conference in Rio, and in the week that The Standard was the first to report that he had run up an £85,000 travel bill on a five-day tour of Africa this summer. In the staff email, the GLA’s chief officer Mary Harpley wrote: “It won’t surprise many of you, I don’t think, that this year we are facing an unprecedented level of uncertainty at the point of setting out our draft budget. “We are of course working hard with government officials to secure the best outcomes for London, but we do not yet know where we are going to end up.” Other factors driving the financial concerns involve the ending of “parachute payments” in the shared prosperity fund that were received in lieu of EU funding that was lost as a consequence of Brexit. In addition, changes in business rates, and uncertainty over council tax receipts, could mean that less money than needed is available for the mayor to spend. Critics of the mayor said it was another example of how the Labour government had failed to deliver the boost to London that had been anticipated by Sir Sadiq. Neil Garratt, a Tory member of the London Assembly, said: "The Mayor told Londoners at last year's election that a Labour government would put the wind in London's sails, a claim that Londoners backed in good faith at the ballot box. “But now we're seeing punitive taxation hitting Londoners, businesses closing, jobs lost all while suffering even more pressure on budgets right across City Hall. “Where is the extra money we were promised? Worse, the mayor refuses to stand up to his anti-London government colleagues." The shortfall only relates to City Hall spending and not other organisations linked to the mayor’s wider empire, such as the Metropolitan police and Transport for London. It could force the mayor to concentrate on “core” spending and end funding of “non-core” items, though it would be a shock if he discontinues his funding of free school meals for London primary school children. The mayor’s draft budget for the 2026/27 financial year is due to be published next week, when the scale of the financial black hole facing the GLA will emerge. However, much will depend on how much Chancellor Rachel Reeves awards the Greater London Authority in grants – with the first clues expected in the Budget on November 26. Normally the mayor’s draft budget is overly cautious – enabling him to announce extra spending each February when the final numbers are confirmed. But this is the first year when the situation has appeared so bleak – though there remain many “moving parts” in how Sir Sadiq will arrive at a balanced budget. Ms Harpley added: “As a result, our draft GLA budget, 2026-27 looks different from previous years as it lays out a budget gap without proposals for how we will meet it. “We need to start planning now for all scenarios. If our financial position stays the same, we will need to meet the budget gap by ensuring that we are focussed on our strategic responsibilities, that our ways of working are as efficient as possible and that our organisational structure is as cost-effective as it can be. “If we find ourselves in this position it is possible that there will be cuts to GLA posts. “I know that this will be unsettling, and I say all this now as I want you to read this from me before our draft budget is published. “And I want to stress that until we are clearer about our funding levels, we will not be putting any options for savings forward. And, if we have to do this, we won’t be making any decisions until January at the earliest.” Last year Sir Sadiq increased his share of council tax bills by four per cent, taking the “precept” to £490.38a year for a typical London household. In September, The Standard revealed that Sir Sadiq’s salary had increased to more than £170,000 – thought to make him the best-paid politician in the UK. In July, all but one of Sir Sadiq’s nine deputy mayors received a pay rise that took their salaries above £150,000. A GLA spokesperson said: “The draft budget for the GLA will be published later this month and will focus on delivering on the issues that matter most to Londoners as we continue to build a fairer, safer and greener London for everyone. “There's currently an unprecedented level of uncertainty regarding the GLA budget as we await a number of funding decisions from the Government, including its reforms to business rates income. The budget is therefore very likely to change and will not be confirmed until the new year. “Given the level of uncertainty, the GLA is taking a cautious approach to this year’s draft budget. The GLA continues to work with the Government to secure the best outcome for the capital ahead of presenting a balanced budget in the new year.”
