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London to take control of its Olympic legacy, public land and funding

In an historic settlement for Londoners, Communities and Local Government Secretary, Eric Pickles has today announced £3 billion of funding …

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

In an historic settlement for Londoners, Communities and Local Government Secretary, Eric Pickles has today announced £3 billion of funding for the Greater London Authority for housing and regeneration in London.

These responsibilities reflect the Mayor of London’s new powers and have been transferred to the Greater London Authority following the Localism Act 2011.

From this April, and in line with Government’s commitment to decentralise power away from Whitehall, the Mayor of London - and not Ministers - will be accountable for the capital’s affordable housing programmes including key development sites like the Greenwich Peninsula, and east London’s Olympic legacy.

The £3 billion funding supports the Mayor’s four year commitment to build 55,000 affordable homes by March 2015, and to bring 45,000 existing social homes up to standard across London, as well as supporting the Mayor’s plans for the Olympic Park.

The current Olympic land and debt deal, first agreed in March 2010, will also be replaced by new receipt sharing arrangements for the Olympic Park to reflect the devolution of Olympic legacy to the Mayor and to protect the interests of the taxpayer.

Local Government Secretary, Eric Pickles said:

This settlement hands real power to London allowing Londoners to manage their own affairs. It goes hand in hand with the new localism powers and spending freedoms we are handing councils around the country so they can be as efficient and effective as possible with public funds.

The lasting legacy from the Olympics will showcase the regeneration and house building achievements that ensures London remains a truly great city.

Mayor of London, Boris Johnson said:

This is a landmark agreement that sees responsibility and accountability for housing and regeneration resting squarely with London. We are now in a great position to drive forward vital investment that will deliver more affordable homes across the city, secure a lasting legacy in the Olympic Park and create thousands of new jobs. I will do all I can to grasp the fantastic opportunities this settlement provides and ensure that London becomes an even better place to live, work and invest in.

Notes to editors

  1. The London reforms in Localism Act 2011 will:
  • devolve the activities of the Homes and Communities Agency in London to the Greater London Authority (in April 2012), including the management of London’s affordable housing programmes

  • abolish the London Development Agency and transfer its activities to the Authority (by 31 March 2012); and

  • enable the Mayor of London to establish a Mayoral Development Corporation to oversee the long term development of the Olympic Park and surrounding area (by 1 April 2012).

  1. The £3 billion for the Greater London Authority covers the spending review period up to 2014-15 and includes: £390 million resource funding; £1,941 million capital investment for housing; and £481 million capital investment for the transformation and development of the Olympic Park after the Games. This funding will be funded from the Department for Communities Local Government from existing resources for housing, Regional Development Agency closure and Olympic legacy.

3. The Greater London Authority will become responsible for all of the Homes and Communities Agency’s land and property assets in London, with Department for Communities and Local Government continuing to receive a 50 per cent share of receipts from Greenwich Peninsula (the Homes Communities Agency’s largest asset) reflecting the significant national investment in this site over the last 15 years.

  1. The Olympic receipts sharing arrangement will enable:
  • the Greater London Authority to fund any further capital investment in the Park and surrounding area, as well as cover the repayment of the residual debt the Authority will inherit from the London Development Agency; and
  • National Lottery distributors to be reimbursed for their additional £675 million contribution to Olympic Public Sector Funding package.


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Published 6 February 2012