Mayor says City Hall move to Royal Docks will save £59m

City Hall was designed by Sir Norman Foster

The Mayor of London has been forced to defend his plans to move City Hall and its staff to a site in Newham to cut costs.

Sadiq Khan told members of the London Assembly there would be a decision on the move by the end of October.

He said potential savings were higher than first thought from £55m to £59m over five years.

But he was criticised by Assembly members for under-estimating the costs and failing to offer any alternatives.

Mr Khan first consulted on the proposal back in June where he claimed the move to The Crystal building would save £11.1m a year in rent and charges.

He told the oversight committee on Wednesday the bigger savings identified since then strengthened the consultation.

'Avoid over-cutting'

Details are being kept confidential while talks continue. The Assembly heard that the landlord had made two improved offers on annual rent and negotiations were ongoing.

The proposal is to move staff to The Crystal, an events venue in the Royal Docks now owned by the GLA, and currently unused offices Transport for London (TfL) headquarters in Palestra House.

City Hall was designed for the capital's mayor and Greater London Authority by Sir Norman Foster.

In December there is a break in the 25-year lease giving the tenant or landlord an opportunity to end it.

The mayor said moving there would make job losses in the GLA less likely.

"We own the freehold, so it would avoid a situation where I over-cut, from 2021," he said.

The mayor said he needed to find savings of £490m - across the services he runs including transport and the police - over the next two years.

Assembly Conservatives have criticised the plans.

"The figures are all over the place," said group leader Susan Hall.