London taxpayers could be forced to pay an extra £2.2 million per year if West Ham United are relegated from the Premier League, it has been revealed. This potential financial blow comes as the Greater London Authority (GLA) grapples with an existing £19.2 million budget gap for the coming year.
A Budget Under Pressure
Senior officials at the GLA have admitted they are "unlikely" to fill the near-£20 million shortfall in their budget. Mary Harpley, the GLA's Chief Officer, told the London Assembly's Budget and Performance Committee that while current projections could shift, the deficit would probably not be entirely eliminated by the time the final budget is presented in February 2026.
The authority is facing an "unprecedented level of uncertainty" due to pending government announcements on business rates, local government reform, and funding settlements. David Bellamy, the Mayor's Chief of Staff, explained that the GLA is waiting for the government's provisional settlement, expected before MPs break for Christmas on December 18, before it can finalise its numbers.
The West Ham Factor: A 'Badly Written' Deal
The financial situation could deteriorate further depending on the fortunes of a football club. West Ham United, currently in the relegation zone, pays £4.4 million annually to rent the London Stadium, which is owned by the GLA.
However, officials confirmed that this rental income could be cut by 50% if the club drops into the Championship. David Bellamy did not mince words, attributing the risk to a "badly written" deal negotiated by former Mayor Boris Johnson, which contains no break clause. He stated, "The previous Mayor negotiated and signed a contract that is a bad financial deal for Londoners."
The GLA already subsidises events at the stadium, with £12 million earmarked for costs in the 2026-27 draft budget.
Political Reactions and Wider Cuts
The revelation sparked a strong reaction from Labour Assembly Member Bassam Mahfouz, who labelled the situation a "financial fiasco" and an "own goal." He remarked, "Londoners across the capital might end up cheering on West Ham once they discover they'll be paying an extra £2.5million a year if the club is relegated."
Meanwhile, Neil Garratt, the City Hall Conservatives' finance spokesman, criticised the Labour Mayor and government, suggesting that the Mayor "must feel badly let down by the Labour Government he spent so long calling for."
The wider £19.2 million budget gap is attributed to several strategic pressures, including:
- Finding £10 million to mitigate the end of UK Shared Prosperity Funding.
- Allocating £9 million for necessary realignments, such as boosting the London Resilience Unit and funding the GLA's staff move to new headquarters in Southwark.
With the final budget presentation scheduled for February, all eyes will be on both the government's funding decisions and West Ham's performance on the pitch, as both have direct consequences for the finances of Londoners.
