The leader of a flagship Conservative borough has today given early backing to London Mayor Boris Johnson's expected call for the capital to be given greater powers to retain taxes and borrow money.

Support from Westminster City Council leader Cllr Philippa Roe follows the leaking to The Guardian newspaper of a copy of the the London Finance Commission's report - which is due to be launched next Wednesday

Chaired by respected academic Professor Tony Travers from the London School of Economics, the Commission urges the wholescale devolution of local taxes in the capital – including council tax, business rates, stamp duty, capital gains property disposal - according to the report.

It further recommends lifting Treasury imposed restrictions on borrowing and urges ‘no further constraints should be imposed on local authorities including through Housing Revenue Account restrictions'.

Cllr Philippa Roe, leader of Westminster City Council, said he borough ‘would support the principle of London retaining a greater share of the resources it raises rather than it being used to subsidise the rest of the country'.

‘What's more we believe this could be done without raising the total level of taxation on individuals. 

‘It is time London's government, both the Mayor and the boroughs, received greater freedoms and powers to allow them, for example, to build more houses and get more people back into work.

‘Central government needs to have the confidence to act decisively and factor this into next month's Comprehensive Spending Review,' Cllr Roe added.