The Mayor advocated London to become a member of the EU at the Mayor’s question time, held at City Hall on Thursday.
Sadiq Khan said: “The cost of Brexit may have high possibilities of a negative outcome since the period during the Brexit negotiations the pound has devalued”.
He further said: “Inflation rates have risen from 0.5% to 2.9%, cost of businesses have rapidly increased passing the cost on to consumers while the wages remain stagnated resulting in a rise in the cost of living.”
Khan said: “Amongst the countries in the G7, UK tops for inflation rate and Brexit’s having a negative toll on businesses in London relying on supply chains across Europe so will the government set aside the party interest and push together the interest of London”.
“People are feeling the Brexit squeeze and are confused where the government is headed currently”, he added.
The fifteenth Mayor’s report to the London Assembly highlights the importance of the European Regional Development Fund (ERDF) which stimulates economic development and growth.
The European Regional Development Fund supports innovative jobs and growth projects targeted at small businesses. United Kingdom will lose the fund as it leaves the European Union.
The report analyses further on the drawbacks of Brexit causing to lose out on the ERDF. Currently organisations have a final chance to apply for a share of G.B.P. 22 million from the ERDF, but once Brexit takes place, these funds will no-longer be available.
Thirty three projects in London are benefitting from more than £50 million of ERDF funding, received since 2016, helping to grow small businesses, improve the environment, create jobs and deliver economic prosperity for the whole country.
Seven further projects worth £12 million are in contract negotiations. A further £75 million will be invested in loans to entrepreneurs and to make London’s businesses more energy efficient claims the report.
The report to the London Assembly further highlighted the need for major increase in infrastructure spending across the UK in the aftermath of Brexit.
The mayor’s view on that infrastructure investment requires all parts of the UK to be subjected to an increase in transport and infrastructure investment from the government in order to support future growth and job creation as Britain exits the European Union.