London mayor Boris Johnson has said that London could “get extra powers to spend stamp duty on large construction projects like Crossrail 2”.
In an interview with BBC London yesterday, Johnson said that he had met with the chancellor to discuss the potential funding route on a project by project basis and believed that a deal could be reached.
Out of £6.4bn in stamp duty raised in 2013/14, 42% was raised by house sales in London.
According to Johnson, stamp duty and business rates raised by “incredible transport development” could be devolved to London.
He said he thought the treasury would not give London all of the stamp duty the capital had raised, but added: “Rather than just saying you can have all of stamp duty, I think they’d like to do it project by project, idea by idea.”