London office developments require a new funding model, according to Boris Johnson.
This approach, which is dubbed tax increment financing (TiF) is already in use in a number of overseas financial hubs and is especially widespread in the US.
Commenting on the proposal, Mr Johnson refuted claims that the move was aimed principally at allowing his office greater fiscal powers and independence from the government.
Rather, the scheme would prove a vital bulwark against the recent credit crunch-driven decline in development activity and would reduce dependence on state funding, he claimed.
“The freedom and responsibility to generate and manage local revenue streams will provide a significant incentive to investment, leveraging private sector funding.
“Tif would be a timely and proportionate response to the impact of the recession. The payback would be substantial,” he said.