Sir Sadiq Khan could be given an “opposition mayor” to keep his power in check under proposals put forward to overhaul London’s governance.

A new report by think tank Re:State has raised fears over the state of democracy in the capital – and has put forward a major plan to improve it.

Under its proposals, the leader of the largest opposition party in the London Assembly would receive their own office, mirroring the role of the Leader of the Opposition in Parliament.

At present, long-time Khan critic Susan Hall would step up – as the leader of the City Hall Conservative group.

The think tank further recommends bolstering the Assembly’s powers, arguing that the current body lacks sufficient authority to properly scrutinise the mayor’s decisions.

Its report, which drew on conversations with prominent figures across the capital’s political landscape, also advocates for London’s 32 boroughs to be consolidated into as few as 10 local authorities.

The report’s authors contend that the existing borough arrangement gets in the way of delivering policy and services efficiently.

Reducing the number of local authorities would bring London’s population distribution into alignment with councils elsewhere in England, with borough leaders gaining formal seats on the Assembly.

Simon Kaye, Re:State’s director of policy and research, characterised the current Assembly as little more than a “talking shop.”

The report declares it is “too weak to adequately scrutinise the mayor of London,” adding: “This is a problem right now, because the mayor of the UK’s largest city is being insufficiently held to account.”

The authors point to equivalent bodies in New York, Berlin, Tokyo and Toronto as examples of assemblies that maintain stronger political opposition-based accountability mechanisms.

The think tank also urges a significant transfer of fiscal powers to City Hall, enabling London to keep a greater share of revenues generated within its boundaries.

The authors specifically argue that the forthcoming tourist tax – expected to be a modest flat charge on hotel stays -should remain entirely in London rather than flowing through Whitehall before being redistributed.

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Currently, the Greater London Authority and boroughs combined receive approximately 70 per cent of their funding from central Government.

New York draws just 26 per cent from higher tiers of government, Paris 16 per cent, whilst Tokyo operates on a mere 6 per cent, meaning the Japanese capital funds almost all local expenditure from its own resources.

Critics who fear that granting London greater fiscal independence would disadvantage other regions are mistaken, the report says.

“London used to lead the way for devolution… 25 years in, the assembly is largely a talking shop and the Mayor cannot affect most of the things that matter to Londoners,” Mr Kaye said.

He added: “To compete in an age of dynamic global cities, the governance of the capital has to change.”

A spokesman for the Mayor of London said: “London is indeed the engine of the UK economy, where investment and growth benefits not only the capital but the whole country, and the mayor is committed to doing everything in his power to unleash our full economic potential.

“Sadiq is pushing ahead with major transformative projects, like redeveloping Oxford Street and extending the Docklands Light Railway, as well as delivering his ambitious London growth plan to boost productivity, all of which will unlock tens of thousands of new homes and create hundreds of thousands of good jobs in the years ahead.

“The mayor is determined to ensure London has greater freedom and flexibility to drive growth, and will continue working closely with partners across central and local government to ensure the English devolution white paper represents a floor not a ceiling, as we continue building a fairer and more prosperous London for everyone.”

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