Skip to content
Thursday 23 July 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
City PM

European business, markets and politics

FTSE 100
10,639.17
-0.73%
DAX
24,763.12
-1.56%
CAC 40
8,299.09
-1.64%
STOXX 50
6,210.17
-1.69%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Thursday 22 April 2021 12:42 pm  |  Updated:  Thursday 22 April 2021 12:53 pm

Sadiq Khan and Shaun Bailey row over ‘ludicrous’ £4.68bn tax bombshell claims

By: Stefan Boscia

Add as a preferred source on Google
Shaun Bailey Launches His Mayor's Campaign Bus
Bailey took to Twitter to apologise for his "serious error of judgement".

Tory mayoral candidate Shaun Bailey and Sadiq Khan have today clashed over claims that the incumbent London mayor would raise taxes by £4.68bn over the next three years if re-elected.

Bailey said today that Khan’s plans would mean households would have to pay £1,339 more in tax, however this figure comes mostly from a proposed tax that has not been approved and would not be paid by Londoners.

Khan’s team said Bailey’s figures were “ludicrous”, had “no basis in reality” and that they were “starting to feel for the Tory candidate” with just weeks to go before polling day.

More than 70 per cent of the £4.68bn figure comes from a claim by Bailey that Khan will bring in a £5.50 levy for anyone not from the capital when they drive into Greater London.

Labour pointed out that this tax was only being discussed and in any case would not be paid for by Londoners.

The rest of the figure comes from an assumption that Khan will again raise council tax by 31 per cent, as he did in his first term, through the cost of a recent increase in the Congestion Charge to £15 and the planned expansion of the Ultra Low Emission Zone (Ulez) in October.

Speaking to City PM today, Bailey said: “Sadiq Khan has wasted so much money as mayor of London – that’s probably been his chief sin. We would make those savings.”

Read more

Bank of England warns Burnham of UK economy’s ‘big issue’

Bank of England Governor Andrew Bailey said the future of interest rates was "more uncertain".

A spokesperson for London Labour quickly hit back at Bailey’s tax bombshell claims.

“These ridiculous claims are so completely ludicrous and lacking in any basis in the real world that we are beginning to feel sorry for the Tory candidate,” they said.

“His campaign has started to look more like a comedy sketch than a real campaign for London mayor. For the avoidance of all doubt – these are invented numbers, with no foundation in the real world and Londoners should just completely ignore them.”

Bailey will face off against incumbent Khan, Green Party candidate Sian Berry and Lib Dem candidate Luisa Porrit in the 6 May mayor of London election.

A new poll for ITV yesterday showed Khan leading Bailey by 41 per cent to 28 per cent.

This is the first poll in more than a year that has Khan with a lead of less than 20 points over the Conservative candidate.

Read more

Sadiq Khan urges tougher Ofcom action as UK prepares social media ban rules

Sadiq Khan addressing media at a press conference in formal attire, discussing recent developments in London policies

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Related Topics

  • London business

Trending Articles

  • Romesh Ranganathan makes it hard to defend the BBC

  • Regulator flags BDO’s ‘unacceptable’ audit issues for fifth year in a row 

  • Tax rises ‘guaranteed’ as Healey faces £22bn black hole from Burnham spending plans

  • BT braces for loss of 800,000 customers as it banks on fibre to keep turnaround ‘on track’

  • ‘We are going to run out’: Mitie marks eleventh mega takeover of 2026

More from City PM

  • Bank of England warns Burnham of UK economy’s ‘big issue’

    Economics
    Bank of England Governor Andrew Bailey said the future of interest rates was "more uncertain".
  • Sadiq Khan urges tougher Ofcom action as UK prepares social media ban rules

    Tech
    Sadiq Khan addressing media at a press conference in formal attire, discussing recent developments in London policies
  • Sadiq Khan lobbies Burnham to appoint Miliband as Chancellor 

    Politics
    Sadiq Khan addressing media at a press conference in formal attire, discussing recent developments in London policies
  • Bank of England governor opens door to ‘simplifying’ financial rulebook

    Regulation
    Bank of England Governor Andrew Bailey said cited several indicators that the labour market was softening.
  • No air conditioning on the Tube? Blame Sadiq Khan

    Opinion
    Crowded London Underground platform during summer heat wave, passengers fanning themselves to stay cool
  • Interest rate cut is ‘off the table’, says Bank of England governor

    Economics
    Governor Andrew Bailey has launched a defence of the Federal Reserve's independence.
  • Sadiq Khan’s London plan is not nearly ambitious enough

    Opinion
    The Mayor of London, Sir Sadiq Khan, has this morning announced a £1.4m cash injection for community sport across the capital.
  • IHT receipts hit record high as Rachel Reeves’ frozen bands raid plague Brits

    Personal Finance
    Inheritance tax receipts are on track for a record breaking year
CityPM

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About City PM
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 City PM Ltd · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook