London mayor takes pay cut over virus funding cut fears

LONDON: London’s mayor announced on Wednesday he will take a 10 percent pay cut due to a budget crisis caused by the coronavirus outbreak, as he urged the government to help Britain’s stretched local authorities.

Sadiq Khan said the capital faces a budget shortfall of nearly £500 million ($628 million, 560 million euros) over the next two years because of an “unprecedented” income loss from the crisis. The Labour mayor warned he could make cuts to police, fire and transport services without additional funding from the government, which he accused of risking “a new era of austerity”.

“Covid-19 has had a devastating impact on London’s public finances,” he said in a statement, warning many local authorities across the country were in a similar position. “I will do everything in my power to persuade ministers not to force another era of austerity on local and regional government.

“It’s only right that I should volunteer for an immediate pay cut in these extremely difficult circumstances.”

As well as taking a cut on his £152,734-a-year salary, Khan said he would freeze the wages of his 15 direct appointments given the £493-million budget shortfall forecast. Like most local authorities, the directly elected London mayor -- created in 2000 as part of local governance reforms -- is funded through government grants and income from sources such as transport fares. Funding for them from the British government has fallen dramatically over the last decade under the so-called austerity policies of the ruling Conservatives brought in after the 2008 global financial crash.