Sir James Cleverly has officially begun his campaign to become Mayor of London, quitting his role on the Conservative front bench to focus on what he described as the need for a candidate who will “fight the corner” of the capital.
The former foreign and home secretary used national radio on Sunday to launch a direct attack on Prime Minister Andy Burnham, saying the Government’s devolution and funding changes risk a shift of power away from London and pose a material threat to council finances across the city.
Centralising power, Cleverly warns
Speaking to LBC, Sir James argued that the devolution policies being pursued would amount to a transfer of influence to other regions, naming Manchester as the place where power would be consolidated “in his own backyard”. He said London stands to lose out under the changes introduced as part of the Government’s fairer funding review.
“The fact is Andy Burnham, for all his careful phraseology, is basically very, very anti- London . You can see this not just in what he’s saying but what he’s doing. He’s stripping hundreds of millions of pounds out of the budget of London councils.”
The fairer funding review, which began under Prime Minister Keir Starmer’s administration, aims to rebalance spending towards more deprived areas. The Government says it is correcting an outdated system; critics in parts of London argue the changes will force councils to raise council tax or reduce services.
Local councils sounding the alarm
Conservative leaders in Westminster, Wandsworth and Kensington & Chelsea have publicly warned that their budgets face severe pressure as a result of the funding adjustments. They say they may have to either increase council tax or make deep service cuts to bridge gaps in their settlements.
Sir James said his decision to step down from the shadow housing, communities and local government brief — which he had held since last July — was taken so he could devote his full attention to a mayoral campaign. Labour incumbent Sir Sadiq Khan is currently midway through his third term and has not yet confirmed whether he will seek re-election in May 2028.
What this means for the mayoral race
The entry of a high-profile Conservative figure into the contest immediately reframes the political dynamic in London. Sir James is seeking to present himself as a defender of the capital against what he portrays as a government agenda that will disadvantage Londoners.
His framing places the national leadership at the centre of the debate over how public funds are distributed between regions — and raises questions about how devolution and local government finance will feature in the mayoral campaign.
- Candidate move: Cleverly resigns shadow brief to concentrate on City Hall campaign.
- Funding dispute: Government’s fairer funding review set to alter council settlements; some London boroughs warn of cuts.
- Incumbent status: Sir Sadiq Khan midway through third term; no confirmation yet on 2028 run.
On the streets of central London, there is wariness among local organisations that deliver services to vulnerable residents. One community worker told me she feared for youth provision and social care services if local authority budgets were squeezed, while traders in the west of the city said uncertainty about council spending made planning difficult.
Numbers and places under pressure
| Council | Concern raised |
|---|---|
| Westminster | Potential council tax rises or service reductions |
| Wandsworth | Budget shortfalls impacting local services |
| Kensington & Chelsea | Facing funding pressures and service decisions |
Officials at the Department for Levelling Up, Housing and Communities have defended the review as a correction to historical imbalances in funding. The Government argues the reform better targets resources to needier areas across the country.
With London’s mayoral contest still more than a year away, Cleverly’s entry crystallises an early fault line: whether the next mayor should be a vigorous advocate for London’s financial position within national decision-making or align with a government push to rebalance spending across regions.
For voters and council leaders in the capital the debate is already practical rather than abstract: how will services be maintained, what will be the effect on council tax, and who will best represent London’s commercial and civic interests to Whitehall?
The coming months are likely to see intensified scrutiny of the fairer funding review and more detailed challenges from opposing campaigns, as London’s finances and its political future become a central battleground ahead of 2028.
