The abolition, in a fit of pique, of the Greater London Council by Margaret Thatcher robbed London of a much-needed level of strategic government for nearly 20 years. So, when Labour brought in the London mayoralty in 2000, it rectified the result of a huge error of judgement by the Conservatives. When Boris Johnson seized the mayoralty for the Tories in 2008 it was a shock to the system in what most people conclude is a progressive, left-leaning city. London swang further towards Labour in 2010 as we won back power in boroughs like Southwark – but City Hall again eluded Labour’s reach in 2012.

In the council elections next year, the general election in 2015 and the next mayoral clash in 2016, we need to build on Labour’s strengths in this city. A significant part of the equation must be our offer to the business community. London, as well as being the capital, is the engine of the UK economy. This goes beyond professional and financial services – London is pre-eminent in the cultural industries, technology and construction.

As Labour party members and Londoners, we have a vital role to play in ensuring that a Labour offer to London is generous, imaginative and credible. Yet the challenges that must be surmounted are great – with economic, social and cultural difficulties to tackle. London councils and the Greater London Authority group face shrinking budgets and council tax squeezes – Boris Johnson has been sacking police officers and firefighters to cut his share of the council tax. At the same time, there must be a fundamental rebalancing of London’s economy away from an over-reliance on financial services. How do we also ensure that we build the homes that London will need, deliver the jobs that will keep the city growing and build the mass transit systems that will keep the city moving?

London’s social settlement is no less complex. London has suffered very badly from the effects of the bedroom tax, for example. London’s hospitals face a funding squeeze and an A&E crisis, including at Lewisham hospital. Under Johnson, homelessness has risen to incredible levels. A sustainable social settlement for London must be delivered if Labour is to ensure that London is an equitable city and not just a playground for the global super-rich.

Should a Labour government also examine what governance for a 21st century world city looks like?  In an era of strategic government, do we need 32 boroughs? Does the Corporation of the City of London need more accountability and transparency? It seems fitting to ask whether the powers of the mayor of London extend far enough, as well. The mayor’s responsibilities are comparatively weaker than other global cities like New York, Paris and Berlin. Should Labour be making plans to boost the power and influence of the office of the mayor and City Hall more widely? It was after all, a Labour idea to introduce the office of mayor – currently held by someone whose capabilities perhaps don’t warrant a greater extension of powers, admittedly, but we must be future-focused and assume the next inhabitant will be more visionary and keener to support the needs of all Londoners.

These questions and others are key to forming a renewed Labour offer for London. To help inform this debate – and support the work that Sadiq Khan MP and Gareth Thomas MP are doing as shadow and deputy shadow ministers for London, I am setting up an LFIG London Group. The aim of the group is to bring forward policy ideas that will inform and support the manifesto making process first for the 2014 council elections, then the 2015 general election and finally the mayoral election in 2016. If you’d like to join us, please get in touch by emailing me.

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Vijay Luthra is a specialist in regeneration, economic development and local government. He tweets @ChaucerVijay

To attend the launch of the LFIG London Policy Group, please sign up here

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Photo: Echoplex7