Taxpayers could face £300m bill over bailout of Sadiq Khan's 'mismanaged' London fund

British taxpayers may be forced to cough up £300m for Sadiq Khan's London housing fund after it repeatedly missed deadlines for a £300m loan.

Auditors have also raised concerns about the terrible management of the project. The Financial Times reported that auditors also raised concerns over whether Sadiq Khan would turn to "support" from his taxpayer-funded budget to help square the debts.

The fund, known as the Greater London Authority Land and Property Limited (GLAP), was inherited along with the debt from the Johnson administration in 2012.

GLAP is one of the largest public-sector landowners in the UK.

Its goal is to create thousands of new homes and help mitigate the country's housing crisis.

However, according to the London Centric news website, over the past six years, GLAP has consistently missed payment deadlines on a £300m Government loan and only made a first payment earlier this year.

To make matters worse, audit documents reveal auditors were unimpressed by the management standard.

The documents claim auditors were “not provided with evidence” about why repayments were not made.

“No supporting documentation to formally agree the non-repayment of the loan was provided,” the report added. “Minutes of meetings are … not taken showing any decisions made.

“There is a risk that decisions made on the loan have not been formally agreed, documented and processes are not in place for the management of risks.”

A spokesperson for the Mayor of London, said: “The Mayor is working closely with GLA Land and Property Limited (GLAP) to help build a fairer London for everyone, delivering up to 68,000 new homes while helping to create thousands of jobs. The repayment schedule for this loan was revised due to the prolonged national economic downturn that severely impacted property and construction industries across the UK. The first repayments were made in March 2024.”