Ken Livingstone, must work hand-in-hand with the Government or London’s economy will suffer, say GVA Grimley, international property advisors with a strong London presence.

The property firm is concerned that open hostilities with the Government or London boroughs could delay decision making. "Any indecision or political tensions between the different levels of Government would prove to be extremely bad for future investment in the London economy," said Stephen Robinson, head of planning at GVA Grimley.

His prime concern is the potential impact of London’s new Mayor on planning decisions in local authorities. The Mayor’s spatial development strategy (SDS) should present an opportunity to set a clear agenda to determine major development schemes, and the regeneration of disadvantaged parts of the City.

"Ken Livingstone is also charged with producing a new economic development strategy, which in parallel with the SDS, will be another positive instrument pursued by the London Development Agency under his control thus exemplifying the need for a strong working relationship with central Government," added Mr Robinson.

Speaking to i-FM, Stephen Robinson said that although planning did not feature in Livingstone's manifesto he had said some positive things about the need for regeneration and higher densities. Set against that he had also called for financial contributions from developers towards large scale affordable housing and transport infrastructure.

"If Ken lives up to his word he will encourage major regeneration schemes and find a way of working with the boroughs and DETR to fast track the best projects. However many sceptics are worried that a hidden social agenda may emerge that could clog up the planning system in London and the delivery of new investment."

The new Mayor will have substantial call-in powers, exceeding those currently exercised by the Secretary of State. A consultation document proposes that applications for commercial developments over 30,000 sq m in the City (and 20,000 sq/m outside it) would be subject to scrutiny.

Dr Jim Whelan, research associate at GVA Grimley says, "The challenge facing Ken is to overcome the fears of planning authorities." A recent survey of London planning officers by GVA Grimley, suggested that a potential call in of more than 300 planning applications a year across the capital will slow down the ability of the development industry to provide for London’s needs.

Richard Byatt